Dude throw a .020 gasket in it and torque it to spec. Then check deck height. I use a digital mic dropped in the hole then rotate the piston through TDC. Bam your done.
Then degree your durations with a wheel. pretty straight foward.
I think you miscalculated. That would be .000 squish. If the piston is .020 out the hole, you would need a .060 step to yield a .040 squish. Am I thinking right?