FOR SCREW DOWN CROWNS.
(A) Screw down the crown tightly onto the case without the stem and measure the distance between the bottom of the crown and the case.
(B ) Screw the new stem tightly into the crown, then insert into the watch until it engages and locks into the movement.
(C ) Press the crown down firmly as far as it will go and hold it there.
(D) Using the vernier callipers, measure the distance between the bottom of the crown and the case.
(E) Subtract the size determined in (D) from the size measured in (A) then subtract a further 0.15mm from this size. This is the amount to shorten the stem by. This should allow the crown to screw full home without compressing the stem too tightly between the movement and the inside of the crown.
(F) Cut the stem leaving it slightly longer than the size determined in (E), and dress down to size using the diamond lap and vernier callipers as described in the original post.
(G) Screw the crown onto the shortened stem and check fit and function, before using a tiny spot of Loctite to secure.
This is now added to original post by Geo.