fast2camciv

i milled my head .040 (SOHC Vtec d16Z6) i know that i need to advance my cam roughly 3-3.5 degrees.
my question is how do i set up my ignition timing? do i set my crank and gear to 0' and then set my dizzy to 16' and then advance my gear 3 degrees?
-or-
do i set the crank at 0, move the cam gear to advance 3' and align to the head (wich is now zero) and then set my dizzy to 16 degrees?

in short what is the sequence of events that i need to do in order to get my ignition/cam timing back to stock with a head that is milled .040????