We demonstrate magneto-optic switching in femtosecond-laser micromachined waveguides written inside bulk terbium-doped Faraday glass. By measuring the polarization phase shift of the light as a function of the applied magnetic field, we find that there is a slight reduction in the effective Verdet constant of the waveguide compared to that of bulk Faraday glass. Electron Paramagnetic Resonance (EPR) measurements confirm that the micromachining leaves the concentration of the terbium ions that are responsible for the Faraday effect virtually unchanged.