Nowadays, the miniaturization of many consumer products is extending the use of micro-milling operations with high quality requirements. However, the impacts of cutting-tool wear on part dimensions, form and surface integrity are not negligible and part quality assurance for a minimum production cost is a challenging task. In fact, industrial practices usually set conservative cutting parameters and early cutting replacement policies in order to minimize the impact of cutting-tool wear on part quality. Although these practices may ensure part integrity, the production cost is far away to be minimized, especially in highly tool-consuming operations like mold and die micromanufacturing. In this paper, an Adaptive Control Optimization (ACO) system is proposed to estimate cutting-tool wear in terms of part quality and adapt the cutting conditions accordingly in order to minimize the production cost, ensuring quality specifications in hardened steel micro-parts. The ACO system is based on: i) a monitoring sensor system composed of a dynamometer; ii) an estimation module with Artificial Neural Networks models; iii) an optimization module with evolutionary optimization algorithms; and iv) a CNC interface module. In order to operate in a nearly real time basis and facilitate the implementation of the ACO system, different evolutionary optimization algorithms are evaluated such as Particle Swarm Optimization (PSO), Genetic Algorithms (GA) and Simulated Annealing (SA) in terms of accuracy, precision and robustness. The results for a given micro-milling operation showed that PSO algorithm performs better than GA and SA algorithms under computing time constraints. Furthermore, the implementation of the final ACO system reported a decrease in the production cost of 12.3% and 29% in comparison with conservative and high production strategies, respectively.