In theory, the dial indicator should be perfectly verticle to the lifter. All you really have to find with it is the TDC, that can be found even if the indicator is at a slight angle. When at an angle all that is compromised is the lobe lift, but that is not needed for the degreeing.
You may be able to take a lifter apart and get a piece of shafting that fits nicely into it that will bring the contact point above the head or deck surface to a hieght that is nice for the dial gauge. (I don't remember if it's 5/8" or 3/4").