When I got my K8, it would only run with the choke on until real hot. If I didn't run with the choke on, it had a real issue running at any speed below about 3500 rpm. Did all the checks. Timing, valves, carb bowls. Once the bike was, hot each idle mixture screw could change the idle but all like the setting at about somewhere over 3 turns.
When I took the motor down to fix the cases I, rebuilt the air cleaner, installed a 4 into 1 and rejetted the carbs.
The mods were:
1. Remove pilot jets, drill by hand with a pin vise and a #78 wire drill. If you simply twist the drill through the jet by hand, it pulls itself through at a constant rate. Once through, you can pull it out. It will come out snug. Drill all the jets and then go back and try to get the same force on the drill drag on all jets. This will get you close to all the same size. #78 gets you a 0.4064 jet nominally.
2. I looked in to the slide cutaway and it seem pretty small and IMO most of the lean spot is right at the slide cutaway as far as tuning goes. It makes sense. Light cruise sees a lot of the slide cutaway. IMO if you raise the needle you are getting more fuel in the mid range. I ended up filling the for holes on the emulsion tube,
with solder. You can see the arrows pointing to the one side of the tube. This mod helps the carb pull fuel at lower demands (kinda like slide cutaway).
3. Went from 110 to 120 mains. (Probably not needed.)
Last weekend, I went from San Diego to the desert through a 4000 foot pass and the motor did not miss a beat. I used 89 octane as recommended here and it ran well. Cali gas has Ethanol . Based on the fill from reserve and the fact that I've yet hit reserve I suspect it's getting over 40 MPG (if the odometer is accurate).
Bike is not cold blooded if the temps are around 90 or above. (Was warm here on Sunday).