Considering the current demands for resource conservation and energy efficiency, innovative machining concepts and increased process reliability have a significant role to play. A combination of martensitic hardening of the subsurface and near-net-shape manufacturing represent a great potential to produce components with wear-resistant subsurfaces in an energy- and time-saving way. Within the scope of the present study, the influence of cryogenic machining of metastable austenitic steel on the martensitic transformation and surface quality was investigated. Different cooling strategies were used. A soft sensor based on eddy current in-process measurements was used to determine and subsequently affect the martensitic transformation of the subsurface. The feed rate and component temperature were identified as significant factors influencing the martensitic transformation. However, a high feed rate leads to an increase in surface roughness, and thus to a reduction in component quality. For this reason, a roughing process for achieving maximum martensitic transformation was carried out first in the present study and then a reduction in the surface roughness by maintaining the martensitic subsurface content was aimed for by a subsequent finishing process. With the knowledge generated, a dynamic process control was finally set up for designing the turning process of a required subsurface condition and surface quality.