I'm Sturmey (UK) factory trained, and a big believer in adjusting hubs by the book -- shoulder of indicator lined up with end of axle in 2nd.

BUT- this only works on hubs built to spec, using the original indicator. These days, many are fitted with analog spindles whose rods are longer or shorter, or on older hubs may have nbeen rebuilt and the axle moved slightly. So my Plan B & C adjustments are, 1st gear = indicator 1/32" shy of fully out, or locating the dead spot between 2nd third, and adjusting the cable so it's midway between the two.