RE: Where do I mount the fuel dot?
Ditto.
Balsa is MUCH easier to repair or fix.
I have mounted DOTS in cowls when there was no other choice, and use the technique of first applying CA on the cowl to harden the entire area.
Then after a light sanding I EPOXY a hardwood backplate where the DOT goes, and finally a large washer behind the DOT to spread out the stress.
This has worked fine, but I avoid doing this whenever I can.