You want the absolute minimum of clearance, while allowing the slide valve to move vertically, as the others have said. Excess clearance = lost motion and less precise timing (as does poor dimensioning). I worked to .001 plus the calculated allowance for steam at operating temp for expansion, because it mustn’t jam. The expansion figures are in The Model Engineers Handbook, as are the steam temperatures for given pressure. .
You also want a really good finish on the portface, because that, or the film of oil on it, is the seal between exhaust and live steam, and you don’t want live steam headed for exhaust, and not bothering with the cylinders in passing.
Check also that the valve does not lift at all when it is moved by the rod.