Hi That amount could be possibly faced off the bottom of the cylinder flanges, then reach inside of the cylinder with a boreing bar and lengthen the depth of the edge of the squish area the same amount and blend it back into the proper configuration. I am sure the piston would hit if this was not done. It will also raise the compression ratio somewhat, without doing some math I can't say just how much but some is a given.
If done correctly it should kill 2 birds with one stone in help of more performace.