Newbie Q - I had to disconnect the cable from the brake calipers to release the tension on my Shimano 600 brake levers when I replaced the handlebars.

1. I squeeze the pads against the rim and pull the cable end through the attaching bolt, but how taut do I pull it? With the open/closed position lever (that I open to remove the wheel) in what position?
2. How do I tighten the dome nut? Do I just tighten it with an 8mm wrench or socket and allow the cable to twist about 30-40 degrees from vertical?
3. After adjusting it I verify the lever feels good, fine tuning it if necessary using the adjuster where the cable sheath ends?
4. Finally, if necessary, I loosen the center mounting bolt, align the caliper so it's centered, and tighten?

Thanks