I think my manual says the gap is .008 between the "stationary" pad and the rotor. What you do is get the piston all the way back in and attach the caliper. From there, turn the adjustment screw for the mounting arm so that the stationary pad has the .008 gap. Then slowly squeeze the lever to close things up and then make sure air is bled out.
Oh make sure to clean a grease the pivot pin for the mounting arm and make sure the spring is clean too.
I'll confirm that in concept. 8thou seems a little big, but my context is pre-K3 at 5 thou I think. 8 thou could be it for later bikes.
Rather than "stationary", as its not really stationary, I like "dead" and "live", or master and slave, or A and B.
Just checked my manual and it says to tighten till the wheel won't turn, back off till it turns, then back off another 1/4 turn. So 8 thou could be it. And they just call it the "pad".