Siber,
It looks as if your tesselation values are too low. With your lofted circles, go into the attribute editor > tessellation > U/V Divisions Factor and crank them up to like 1.5 or so. Should smooth everything out for you.
Booleans will work fine also if you want to go the poly route...create a cylinder. Duplicate it and universally scale it in a bit then up in the Y so you can see it. Select the outer cylinder first, then shift-select the inner. Go to polygons > Booleans > Difference and it will hollow out the cylinder. It's important which cylinder you pick first. Otherwise, you may get undesirable results. Just scale it into the washer shape afterwards. You would then play with smoothing to get it as smooth as you want.
Like everything else, there are plenty of ways to achieve the same result in Maya.
"Terminat Bora Diem, Terminal Auctor opus."