1/16" should be plenty to align with, however, most wheel adapters will have more than a 1/16" chamfer (and all wheels I have seen do) so they will not center. I really dislike lug centric anything.
I have machined several sets of spacers and a set of hub centric rings custom to my applications. If you can work with your machinist so they know to leave the inside corner practically sharp you should be in good shape.
This is my current hub centric ring that also centers up my rotor.
This is a set for my first set of wheels.
