I've tried the dial-indicator thing a couple of times with mixed results - just difficult to get everything set up solid enough to trust the results.
I've had pretty good results for the last 24 years just tightening the nut until it started to bind the bearing a bit, then backing of just enough to actually feel a tiny bit or play when tugging on the top and bottom of the wheel after it's mounted - just a tiny bit of a click when wiggling it. Original bearings, original grease 24 years old, so must be OK. This is how all the old-school guys did it 50 years ago.

DG