Did you fit the head gasket?
no but it hits the block no where near its full lift so I don't think that will cure it, and I would rather it didn't touch the block like the rest of the valves, it is only about 20 thou (0.5mm) to big and just clips the very edge of the valve...
The Head gaskets are around 0.040" (1 mm) thick. If it's only just kissing without the gasket, good chance that's all that it will need. You will of course need to check what the fitted thickness is of the gasket you intend to use.
I've built up a few engines where the pistons actually come out proud of the block deck, but up to 0.014" in one case and the gasket provided enough clearance.
If you do end up pocketing the block, really, all cylinders should be pocket so as to maintain the same CR between cylinders and gas flow characteristics.
Edited by Moke Spider, 14 June 2015 - 05:31 AM.