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I did this to a '73 318:

Rebuilt junkyard 360 heads with the intake seat cut to 2.02".
Heads shaved .060" for compression.
'68 340 intake
TINY hydraulic cam- the smallest one PAW sold at the time.
Headers and a Holley 650.

REALLY woke that little 318 up!

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....you really need to shave the heads .060 to get the compresssion back to 10:1 using a .020 headgasket, consider the crush height of the installed head gasket when running the J head on a 318, manufacturer will state what the compressed installed height is,....if you go into the 2.020 intake valves, with a milled .060 head and .020 steel head gasket, your limited to about .490 lift on the cam, and 270 duration before you incouter some piston to valve interference,....best to check your piston to valve clearance anyway to be sure,....when milling .060 off the heads, thats based on a virgin assy casting, so have the machine shop check head height before milling, as most heads surviving today have surely been milled somewhat over the years