These bikes are notorious for this issue. Your not doing anything wrong at all. In my belief this is the Achilles Heal of the entire design of the bike. I had the same issue for quite sometime, and couldn't figure out if it was something missed or was I not following the procedure correctly (it was neither).
My clutch is adjusted in such a way that jerk's a little when cold, but smooths out when running for extended periods
The way that I adjust my clutch so it is on the tighter side of the "feel" spectrum. Depending on the type of clutch springs you are using (I am using red springs for racing applications) will determine the type of feel you experience.
The procedure that I follow is as such, and it is with a cold motor (keep in mind that I am doing this off the top of my head, and don't have the manual in front of me):
~Assuming all parts are clean and lightly lubricated, and there is full slack to the cable in both directions (at the perch, and at the case) I start by loosening the 10mm hold down bolt for the slack adjuster (worm/screw gear).
~Using a high quality tool for the large slotted adjuster, (a Quarter) turn the adjuster full clockwise until it stops (don't force it any further), and then I move it the opposite direction just off of that stopping point. This should be right around the hash mark that is cast into the cover. Rule of thumb is to set the slot in line with the mark.
~I then tighten the 10mm set bolt in place, and take up the cable slack with cable adjuster at the case, feeling and watching the lever at the perch as I do this. When I begin to get the feeling of the clutch springs that I like (without any binding) is when I take up the remaining slack at the case, leave room for fine adjustment at the perch adjuster, and lock down the double nut
~This is where I take my free-play adjustment specification in to consideration, and determine whether or not I have to make some other adjustment's to what my preference is. When satisfied, I lock everything down and double check that I have everything in order.
~I do a good test ride to see how my adjustments are. If I don't like it, I do it again, until I do like it.
NOTE: Lever excessively tight will put undue stress on the cable, and will wear it out quicker (possibly even snap at an inopportune moment, in which you will either have to call for a tow or time traffic lights exactly...I've had to do the later more then once). I have noticed that my bike hates stoplight's, and rush hour traffic.
Take It Easy