Re-use the old shims and make sure you don't loose order in which they came off! there are top and bottom shims for both sides. They dictate knuckle centering to axle housing and trunnion bearing pre-load.
Once steering arm and trunion bearing cap is torqued down the knuckle should have a little drag(preload) but not stiff or hard to move by hand. Also should not be really easy to turn, zero resistance. Do this with out felt or ball wiper not bolted down as that will produce false drag. This is all assuming you are using new bearings, which you should replace while you are in there. Use the Marlin Crawler Eco Seals, only way to go! You will be cussing up a storm trying to put the OEM design in