The sleeve itself is more durable than the original cast iron, and it's preferable to have a continuous support surface down to the lowest point of skirt travel (@ BDC). The KH castings are extremely heavy vs. 45 cylinders in many places including the flange. However, the extreme stroke length requires the spigot mouth to be relieved for rod clearance. LA Sleeve may have done this (notched the sleeve), but not accurately located the notches with your actual rod beam position - check to make sure. Just a guess: if the spigot mouth notches align with the remainder of the original notches it's OK, you only need 1/16" on either side of the beam. If the rotation is off a bit, just extend the notch wherever it's needed with a file, die grinder, etc. (milling not needed). The notch extends far up the flange inside the casting - check this also.

I would also try to juggle the gasket thickness(es) for the base flange and head (if any) to get the piston to within .035" @ TDC, or as close as possible. The original K series engines used silver paint without a head gasket and a very thin paper base gasket; using anything else is almost certain to move the piston below this @ TDC.