Okay, here's what I found out.
With no gasket, cylinder directly on the case, piston comes out of the hole 1.5mm and I came up with 178 degrees on the exhaust and 123 on the transfer ports.
With a single .020" gasket, the piston comes out of the hole 1mm and I get 180 degrees on the exhaust and 124 on the transfer ports. The stock head gasket is 1.4mm and the dome part of the head is recessed a little bit so it should work as far as squish goes. Not sure what uccr would be.
At this cylinder height, the bottom of the exhaust and transfers need to be lowered about 2mm. I was thinking about taking the top of the exhaust port up to about 184 degrees, cleaning up the ports a bit and trying it out. Any thoughts on how it will run at 184/124 port timing? Basically all it will cost me at this time is a base gasket, and possibly a different dome for the cool head to get the compression ratio in check.
I'll go back out and see what the squish would be.