the correct method is to leave the nut backed off the 90 degrees. At that point you must ignore the excessive play and set the lock ring and torque the outer nut. Once torqued, the end play is reduced back down to where it is supposed to be.
I know a lot have done it like you are describing, but by the book the adjusting nut is left loose. No re-tightening involved before torquing the outer nut.
And yes correct about the dial-indicator and probably a magnetic base if you don't have another method of attachment.
there is another thread just from the last few days where a member has just set his and is checking the end play. Check it out.
We should have asked him for pics of how he's doing it!
After you've done a few, you can tell how much play is left by feel. It might not be precise, but it's pretty darn close!
Paul