Leaking hydraulic plug

[Mtnlover64]

Hello, I have a leaking hydraulic/ differential plug on my JD x585 and I'm trying to find the best way to fix it. The differential housing is aluminum- the plug steel, I've tried wrapping Teflon tape around the plug but it's still leaking. The threads in the housing are almost stripped out. Someone suggested Teflon paste but I'm not sure if that will help, the plug is only 1/2 to 3/4 inches long, any ideas ?

 

[Katahdin]

Can you drill out the hole and tap new threads for a plug of the next largest size?

 

[PILOON]

If memory serves me right, auto supply shops carry self tapping oil change replacement plugs just for that purpose.
Might be worth checking that out. Be sure to get the smallest to do the job, i.e. just a tad oversize.
Good luck.