Jack Plate problems

[Esox]

I put a jack plate on my boat over the weekend. When I was looking things over before I installed the plate I noticed there would be a problem with the steering cylinder clearing the transom when tilting the engine all the way. The transom is notched where the engine sits but the width of the notched area isn't enough to clear the steering cylinder now that the engine is setback 5". I went ahead and installed it anyways. In order to tilt the engine all the way up to engage the trailer bracket the A/V plate is 3 1/2" above the bottom of the keel. I think that is going to be too high for my hull. Just wondering if others have run into this problem and if so what was your solution? Aside from a installing a hydraulic plate I figure my only options are to add 2" spacers (maybe too much setback for this application) or perform surgery on the transom? Thoughts, suggestions comments? Thanks.

Here it is before adding the setback.

And here it is after the setback.

Mike