Here is an almost fool proof method for clutch adjustment. It takes the guesswork out of the "feel" for the adjuster.
Once you have opened up the derby cover and are ready to proceed...

1)Collapse the adjuster on the cable sleeve all the way.

2)Pull the lever against the bar and hold it there with slight force.

3)Turn the pushrod adjuster bolt in while holding the lever against the bar lightly until it starts to force the lever away for some distance. (Do this more than once to get the feel). While keeping light pressure on the lever back the adjuster bolt out just until the lever touches the bar again and then another little bit, about 1/2 turn , then lock it.

4)Adjust the cable freeplay at the lever for 1/16" free play.

You should be good to go .

Always adjust the clutch on a cold bike for best results.

**It's better to adjust the clutch so that it starts to grab at least an inch or more from the bar for complete disc separation, which translates into better/quieter shifting.Using this method, you can "feel" where the lever is going to grab with a little practice.

Buy yourself a cheap 11/16 deep well socket and weld a nut on top of it. This makes the perfect tool for the adjuster lock nut. You can then use an Allen wrench inside the socket and a wrench on the nut you have just welded on. Makes it a lot simpler.

You can also see "clutch adjustment by the book" in this same forum found... HERE