Thanks. The surface temp at the top of the head should be about 130-140F -- warm to touch, but not hot enough to burn after touching for a few seconds. (Running cold can give poor combustion.) It sound like it's getting up to temp, offhand. On the other hand, temp at the top of the head shouldn't exceed 160.
Additionally, you may be running rich due to a rich air/fuel mix. The top (l.s.) needle should be about one turn open, maybe a little more. The bottom needle (h.s.) should be about 3/4 open. Lean is clockwise, and the object is to get it running well at a lean setting (best combustion).