In regards to milling off the cylinders, maybe this info will relate a little bit.
Instead of milling the cylinders, I have always heard you can mill a stock head about .040" to .050" and still safely run pump gas. If you measure a stock head, the shoulder depth from the flat part of the head to the edge of the dome is usually about .070". Make sure you measure this first. If the head has already been cut a little, you don't want to go a full .050" because you'll end up removing too much material. You can safely take off the whole lip, but be sure not to cut into the dome. If you take off the whole shoulder, it usually results in too much compression for pump gas though. You want about .020" shoulder to still run pump gas. Keep in mind these measurements are for stock piston port pistons. If you use reed pistons, this might change the above measurements because they usually generate higher compression in comparison to piston port pistons.
Stock reed motor pistons with dual rings will fit into a stock piston port bore, but they might be a little tight in some cases. Many guys swap in stock reed pistons when their stock piston port pistons are worn out. At one point I read the stock reed piston is about .005" larger in diameter than a stock piston port piston. So a reed piston will likely work well in a worn out stock piston port bore.
If that guy milled .136" off his cylinders, those pistons must be pretty close to smacking the head unless he's had the domes recut.