It's not a must to mill the emitter pocket. I've gotten good results without doing that, comparable to the beam shown by Illum above. But of course, it may not be at the exact "optimum" focus. But from my experience focusing SF TH towers and KL4s for an MC-E, I would say that the "optimum" focus height covers a range over which there is little difference in beam quality.
Referencing the datasheet for the MC-E, the MC-E case height is 1.45mm (+/-0.1mm). In fact, I measured my MC-E case at exactly 1.45mm. I also measured my Lux V case height (bottom of slug to top of black plastic case) at 2.57mm. That means you need to raise the MC-E up by 1.12mm so that the top of the MC-E case is at the same height as the Lux V case is when mounted in the KL4.
In addition, the Lux V datasheet specifies a "float" height of 0.49mm for the die above the top of the case. Thus, you need to get the MC-E die up higher by 0.49mm.
Next, we note that the emitter pocket is 0.106" (2.69mm) deep. Thus, if you shim up the MC-E by 1.12mm, it appears that there is still about 0.12mm of free space before the MC-E case hits the bottom of the emitter pocket. That means you can actually shim up the MC-E by about 1.24mm max before you run out of space in the emitter pocket. This leaves the MC-E die about 0.37mm lower than the Lux V die.
To gain this last 0.37mm, you can shim up the MC-E by 1.24mm+0.37mm = 1.61mm (~0.063") and mill the emitter pocket deeper by 0.37mm (~0.015"), give or take any tolerances you might want to apply.
mudman suggests above to use an MC-E spacer height of 0.065" to 0.070" thick, which seems to be in reasonable agreement with my estimate. mudman also recommends milling out the emitter pocket by MC-E thickness + spacer thickness + a few thousandths extra clearance - emitter pocket depth, which is the same equation I am using.
In
this post, AaronM suggest a shim of 1.8mm and milling depth of 0.35mm. This also seems to be in reasonable agreement. The small variations in estimates is probably due to the inherent variability in micrometer measurements made by different people, as well as manufacturing tolerance variations in the KL4 heads and for the LED case dimensions (e.g., MC-E tolerance is +/-0.1mm).
If you don't do any emitter pocket milling, then just shim up the MC-E by the max: 2.69mm - 1.45mm = 1.24mm = 0.049". You'll be short by about 0.37mm from the optimum (on paper) emitter height.