The first thing I would do, since you already have the head and cylinder off, is lap the mating surfaces smooth. You can search for how to do it on this site, there are tons of posts on making them smooth to help eliminate head leaks.
Then use regular or shouldered nuts instead of acorn nuts when reinstalling the head.
After everything is buttoned up and the engine is running (preferably idling, but as low an rpm as possible at first) spray various areas of the motor with WD40 or carb cleaner. If there is a leak and the spray gets sucked in, it should affect the rpms. If so, you found a leak.
Common places for leaks are at the head, intake manifold where it meets the cylinder, intake manifold where it meets the carb, and at the crank seals on the clutch or magneto side.
Good luck!
Also, what oil ratio are you running, and what plug?