I'll maybe write up some more comprehensive thoughts on what you can do. Hold tight for later, but you're going to need a dremel with grinding bits and sanding drums
I did a detailed thread of my first serious porting project,
Porting 101. It and the linked threads within it get into grinding the cases, cylinder, and piston for an LML with a DR.
First off, replace the stock reed with a fiberglass reed. You can cut out the bar and open it up to improve the flow significantly. These changes alone will get you over an HP right there.
Open up all the ports & windows, then you're looking for port timings of 185 ED / 124 TD / 31 BD. You'll have to raise the exhaust port about 5mm to make that happen, and if you raise the cylinder to get it 2mm above the piston peak, you'll have your 124 TD, but need to get the cylinder skimmed down or get your hands on a recessed head, e.g. from a BGM 177.
For the head, you want
copper spray gasket. I use it on the base, too.
For ignition timing, 17 BTDC is what you're going to want. You may lose a tiny bit of power, and tThe kit's instructions say 18, but at higher RPM's, that seems to produce a tendency to seize in front of the exhaust port in my experience and kill the piston after or during long WOT runs.
Also, get a CHT. Trailtech makes a good, cheap one. It'll make jetting testing much easier, and also act as a warning system if things go awry, such as a head nut loosening and causing a head leak leading to a rear wheel lock seize at 60 MPH. Ask me how I know...
Finally, you have 2mm rings, so you're not going to get past 7,700 RPM's, which means you're gearing is going to be low, so you can get a little bit of a top end bump with a 22t clutch, like from 60-62 MPH up to like 65.
Good luck and keep us updated!