You guys recommend I have around 1mm squish? I can fix that no problem, just increase the base gasket a tiny bit. Also my squish test was very quick, I can probably do it better and get a slightly different reading.
However when I google, my results say 0.8mm is ideal for a 125.
Edit: after some more googling, it looks like ideal is 1mm for road riding. If you want more performence like on tracks where you don't expect it to last, 0.8mm is ideal.
My engine needs rebuilding either way, so I will be doing that. After that I will be trying the same base gasket and I will do a real proper squish test. If its under 1mm, I will up the gasket till it is 1mm.
I will update you guys from there.