You only need about an inch?

My first thought would be to get a stem that had a little more rise angle. Be sure to get one that has the right clamp size for your handlebar. Unless you have a pretty radical stem now that will almost surely give you an additional inch.

My second thought would be to buy a bar that has a little rise. The downside to that is a riser bar is also likely to be a couple of inches wider. Between the riser bar and being a little wider, you might have to recable your bike.

I'd think long and hard before cutting the steerer. It's easily done but afterwards it can't be undone.