Should work, looks like you've got enough headtube & lug there to play with. What I would do is mark a line around the lugs to where I want to remove to, very carefully take a large file to it and get within a MM or so, and then face to the line.

One thing to consider is if you can get the additional "height" you need from just taking away from the top lug, do that; removing material from the lower lug will (very slightly) alter your bike's geometry.