It would help others if you put your exact bike year, model etc., in your signature.
From the description it must be a Kz550A, Kz550C, or Kz550D.
The proper way to set the screws is to turn them in slightly (richens) until the RPMs just start to drop, then turn them out slowly for maximum RPM, then turn them out more (leans) until it drops again, then turn them back in until you just get back to the max RPM. That is called the lean-drop method. You want to adjust from the lean side, because if you adjust from the rich side, gas can accumulate in the intake and give you a false setting.The bike's stock tach is not precise enough to do this accurately. It takes an external, electronic tach to really see the tiny changes in RPM.
This is usually the last step after syncing etc. The bike should be fully warm.
1/4 turn is probably too few, but that may change if you use the above method.
If it idles best at 1/2 turn out to 3/4 turn out on the air screws, then your pilot jets may be too small, as is usually the case when converting to pods. If it starts and runs ok, there is no pressing reason to drill the pilots just so you can turn airscrews out more. But usually it means there will be some lean areas during cold temperature riding.
But make sure there are no vacuum leaks before deciding to adjust anything, since vac leaks will greatly affect the air-screw setting.
You can try to drill the pilots to 34. That requires drill #80. That's the tiniest bit in the typical set, so it takes some patience. The drill should be very slow, somewhere around 60 to 100 RPM, and don't force it.