1. As others have said, doing anything other than PTFE wrapping is economically pointless.
2. You could, if you had a lathe:
2a. Put the valve spindle in the lathe, get it running true or use an accurate collet chuck
2b. Clean up the diameter as far as possible while leaving splines / flats for handle attachment untouched or at least usable.
2c. Polish the spindle plain diameter.
2d. Get hold of some virgin Teflon rod, say 10mm diameter or more than whatever is needed to fit the bore of the tap body.
2e. Drill out to the OD of the valve spindle less say 0.5 mm.
2f. Turn down the OD to fit the valve body bore.
2g. Part off to required length.
2h. Fit Teflon sleeve to valve and screw down gland nut.
3. Personally, I'd prefer to shut the valve, remove the gland nut, clean / polish the spindle as far as possible, PTFE wrap, replace gland nut, test and finish. Cheaper, quicker, and uses the same material.
4. You can get graphited yarn from model engine suppliers. As far as I'm aware its not WRAS approved so shouldn't be used on potable water fittings.