Your feedrate (FR) is way too slow, so you are overheating your bit.
Rather than throwing darts to find the best feedrate (FR), speed (RPM) and depth (DOC) I think that you should do some research into the concept of Chip Load (CL). Determining a suitable CL for a given type of material and a given bit will give you the information needed to select FR, RPM and DOC (or at least a reasonable starting point).
Here’s a good introductory web page that discusses CL:
Here’s a post in another thread that discusses CL:
For your situation (1/8" single flute bit, hardwood), recommended CL is 0.004 inch/tooth (+/- 0.001). Converting that to metric, CL is 0.102 mm/tooth (0.004 IPT * 25.4 mm/in)
CL = FR/(RPM * # of teeth) therefore FR = CL * (RPM * # of teeth)
The CL is rated for DOC = bit diameter, and that is a reasonable starting depth.
Because you are using a single flute bit, FR = CL * RPM. Select a RPM that is in the middle of the router’s range, so that you can adjust up or down if needed. Say 20,000.
FR = 0.102 * 20000 = 2,032 mm/min (round to 2000). This converts to 33.8 mm/sec (round up or down to 30 or 35)
If you want to try a bit slower FR, then lower your RPM so that the CL remains constant, but I find that the router loses some torque at lower RPM..
So, first of all, replace the bit with a new one, then try DOC = 3mm, RPM = 20,000, FR = 2000 mm/min. Listen for strain on the router, and adjust the RPM up or down one notch if needed. Watch the chips that are being produced, and make sure that they are not sawdust.
As mentioned, this is a starting spot, so you may need to adjust for different pieces of stock with different hardness (plywood is notorious for having variable hardness).
Hope this helps.