this is how I adjust mine
People have had good success with these:
First, make sure the bike is cold. Adjusting a worm or hot clutch casues problems:
1) Induce maximum slack in the cable by loosening the jam nut then the adjusting nut inside the rubber boot on the cable.
2) If you need to lube the cable, remove the cable end from the lever by removing the snap ring, and pushing the retaining pin up through the lever bracket.
3) Remove the clutch inspection cover, using a “star pattern” on the five retaining bolts. Note which hole on the cover is to the top and replace it the same way (the cover eventually takes the shape of the primary cover, so this prevents leaks).
4) Loosen the 11/16” nut in the center of the clutch.
5) Using an Allen wrench, loosen the clutch adjusting screw, which is the center of the threaded rod inside the nut.
6) This is the critical step. Holding the Allen wrench between your thumb and forefinger, and tighten it (turn it clockwise) just to the point that resistance is felt. From that point, turn it counterclockwise ½ to 1 turn (1/2 for most riders is good, ¾ if you use the clutch a lot for control at low speeds, a full turn I use only for police bikes).
7) Making sure to hold the Allen wrench at that position, tighten the clutch nut. If you have a crow’s foot, you can torque it to spec, which –12 ft-lbs. – if not just get it good and snug. An offset wrench is best, but you can use a regular open end wrench. However, if you do, be careful not to let it slip off the nut, since it will be at an angle to clear the primary cover.
8) Replace the clutch cover, and gasket, tightening in a star pattern to the right torque (84-108 inch/pounds or 10 n/m).
9) If you removed the cable end from the lever replace it, and tighten the cable. Squeeze the lever three times to re-set the ball and ramp mechanism in the release. Then fine tune your cable adjustment, so the free-play is correct. (The edge of a nickel should fit between the shoulder of the ferrule and the bracket.
and from the person who gave me those instructions
Increasing fom 1/2 to 3/4 lengthens the "gray area" of the clutch, so you can more precisely modulate the application of power to the rear wheel, using the clutch. If you tend to use your clutch as an either in or out proposition, you won't notice a difference. It's only helpful when using the clutch to make low speed manuevers.