Tools you need to do the job:
Feeler gauge set with .004" (0.1MM) and .006" (0.15MM) blades. If you don't have one,
this is a great set that I use.
8MM wrench, small flathead/slotted screwdriver
Recommended: 5/8" spark plug socket, ratchet for that socket, and a straw. Coffee straw, drinking straw, doesn't matter.
Your engine must be "cold" for this procedure. I set my valves after my engine has sat overnight.
1a) Remove the 4 bolts on valve cover with the 8MM wrench. Carefully lift the valve cover off the engine. The objective is to not stress the valve cover gasket.
If the gasket sticks to the engine, that's okay, just leave it there.
1b) Recommended: Carefully remove spark plug boot and then remove the spark plug with the 5/8" spark plug socket.
2) Now you have to find TDC on the compression stroke. If you're not familiar with each stroke on a 4-stroke, I've attached an image that should help. Take a good look at the valves while slowly pulling on the pullstart a few times. You need to adjust the valves when both valves are fully closed, and this only happens at Top Dead Center of the compression stroke. The valves are closed for the longest amount of time between the start of the 2nd stroke and the start of the 4th. Insert the straw into the spark plug hole and find TDC. The straw will be at it's highest point and there should be play in both valve rockers. If there's no play, they are set too tight.
3) On each valve rocker there is a slotted stud with a nut on it. Loosen the nut on each rocker with the 8MM wrench. The rocker closest to the exhaust is the exhaust valve, and the rocker closest to the carb is the intake valve. Use the feeler gauge and the screwdriver on the stud (loosen the nut as needed) to set the clearances. A proper setting is when you feel a light drag of the blade as you pull it through the space between rocker and valve stem. When you have the clearance you need, hold the stud's position with the screwdriver and tighten the nut about wrist-tight. Repeat for other valve.
4) Put the plug back in and the valve cover back on. Don't overtighten the valve cover bolts, they only need to be snug, about halfway between thumb-tight and wrist-tight.
Now take her for a good ride!