I see a potential problem here. Suppose you design a billet machined valve body fully compliant with the cast body's geometry to a reasonable approximation, i.e. same machined surfaces on interior, machined approximations to cast surfaces on inside, same machined surfaces on exterior, machined approximations to cast surfaces on outside, etc, and you specify a material with properties similar to or better than the cast alloy.
If it turns out that the old valve failed because of a design flaw, not a material flaw, then you have made a machined duplicate of a flawed casting design, and the new valve will fail in the same way as the old one, unless perhaps the new material is substantially better.
This is primarily an artifact of requiring the 'same envelope'. Sure, same overall length etc. makes sense, but especially because an article has already failed, I personally would be inclinded to upsize the stressed parts of the valve, e.g. make the bulk of the body thicker, with larger wrenching features or thicker flanges, all of which is actually cheaper to do when making the valve from billet.
If weight or fatigue is not a huge issue, I'd even be inclined to leave the outside of the body "squared off" to a large extent, because it's cheaper and because it's free strength.
But this doesn't sound like the sort of thing that you feel comfortable doing, which is why you came here. At this point, I'd suggest making a drawing of what you can do to approximate the _interior_ of the cast valve by machining, and ask the customer to take responsibility for material selection and for the exterior geometry, or to engage a third party who can do so. Unless you told the customer that you're a complete valve design house, in which case you should engage the third party.
The way you describe the relationship between you and the customer suggests the faint odor of the remote possibility that he knows the design is flawed, and he's trying to snooker you into accepting responsibility for it, and paying to get it fixed. In which case it would be cheap insurance to engage a third party of your own anyway.
Mike Halloran
Pembroke Pines, FL, USA