I've milled the hunter alloy head down so far before. It starts chewing into the side cover mounting area with no problems of head gasket blowing.
The 1725 alloy head is very bad at stepping on the deck surface. As it's cooling design is a bit slap dash and has uneven operating temps across the deck. A non-circular fire ring in the head gasket also makes the fire ring very weak. Blowing into the kidney shaped water jacket is nearly always the course of head gasket failure.
One easy way around this problem. If you have some spare motors lying around, just nick all the head studs, nuts and woshers out of them and throw away all the stretch head bolts. you may need 4x motors to collect these all up, as most 1725's only have 2 or 3, and generly only put in where a heater hose clamp is required. you will also note these studs will need to be trimmed down to fit under the rocker gear assembly. ( these studs are very hard and you will have a good work out cutting five of them by hacksaw ) Dont use a grinder or anything that may heat the stud when cutting it as it will retemper the steel and lose it's high tensile properties.
I've also in the past put a lock nut on top of all the studs to prevent the head nut from creeping undone. If my memory serves me well, most "ae500" head gaskets on the market do need to be retorqed after a short run in time. so waiting till after this time to put a lock nut on would make sense.