You could use a circular saw with a masonary blade, as long as the tile is cut about the same at each end. the blade wont reach close enough to the ends to cut that. The T transition should have at least 3/8" coverage. Another option is a small tile saw that looks like a circular saw . Set the blade to the height of the material you need to remove. Try not to go into the subfloor. If you use the saw dry its going to kick up a lot of dust, so take care to seal off area as much as possible. The only other thing you could do is make a transition that will cover, without having to cut the tile. I have not seen one so bad that a transition would not cover. Must be a fine installation.
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