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Set them cold, take your time. If you lash them at .018 to .020 they will be just fine. I would set them to .018 myself.
Setting lash with the engine running can be done with a no-nogo feeler gauge, but it is usually done on those domestic engines that don't use a separate locking nut. Small block Chevs use a pinch nut on the fulcrum, old Dodges use a pinch bolt on the pushrod end of the rocker. No need to try a running adjustment on the Volvo.
My R cam from many years ago was an Isky copy, and they spec'd .016 intake and .018 exhaust.
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