I don't know how to help you. First, I've never done one that was locked up, I have only done pre-emptive fixes. Therefore, I"m not clear on the exact procedure.
In cases of locked up assemblies, you drill the pin out - but you won't have the key in the lock because there is no reason to have the key in there - its LOCKED so putting the key in isn't helpful.
You can remove the assembly cause the key is not in there and you have drilled the pin, so there is no reason to put the key in.

Are you saying you cannot pull the key out? If you can't, then you actually have turned the key past "zero", I'd think you can rotate the black ring and remove the ring and the key/tumblers will come out!