So close to running, but then this happened!

The easy out is made of hardened metal (so is the drill bit). The drill bit is maybe a little softer than the easy out but it's still pretty hard. But they make carbide drill bits in just about every size, they are a little expensive but a carbide drill bit can drill through glass (I done it)!! The only problem is that a carbide drill bit is also very hard (harder than the drill or the easy out) so if you break it off in the bolt you're going to have a real problem. Try grinding a nice flat surface on the tip of the bolt if there's any sticking out so you can get a good shot at hitting it right in the middle. Normally you would take a center punch and mark the bolt in the center. If you haven't put any water in the engine you can get a propane torch and heat the outside of the head (around the bolt) and put some penetrating oil on the threads after it gets really hot. Then use a stud remover and maybe it will break loose and you can also get someone to weld a nut on there like others have stated. If you heat the area around the bolt and get some penetrating oil into the threads you'll have a better chance of breaking it loose.
Another trick is to hammer on the easy out and drill bit (WEAR SAFETY GOGGLES OR FACE SHIELD!!!!!) with a pointed punch. Eventually the drill bit and easy out will break into small pieces because they are so brittle. Then you can take the little pieces out (one by one). You can also get a small carbide burr with a die grinder and grind the drill bit and the easy out from the bolt. It WILL come out...one way or another!!!! If you break the carbide drill bit in the hole a carbide burr will no longer help you as they are both carbide!!!



Treblig

Totally agree with treblig except try to find a left hand carbide drill bit (machinist supply co, sometimes Grainger) and drill it out slowly. The welding a nut onto the stud is the way to go if you have a welder. I use a piece of copper or brass with a hole the same size of the stud as a cover to not weld onto the head. Good luck.