some say 190# cranking pressure is good for a street motor...that would be 11.2 with 264 cams or 10.8 with 260 cams
Might want to go a little conservative with the CR, since the stock heads don't have the greatest anti-knock characteristics (squish, flame travel, etc.) - possibly 10.5 with a stock thickness gasket?

If you decide to send the heads out for some major reshaping rather than just a quick milling, then go with the recommendation of your head guy. Another thing to think about is the amount of material you would need to remove to obtain a 2 point increase in CR; rough guesstimate .110" - .120". Might want to look at having higher CR pistons installed instead, when they are replacing your cylinders and head gaskets for the oil leak (I'm assuming you will experience this if you haven't already).
Jerry