Milling Intake Manifold

Can someone school me on milling my intake.
I had my block milled .015 last winter to clean it up for a MLS head gasket. Since I got it together I've had a water leak between the intake and the head in the back on the right side. And every once in a while it would burn a little bit of oil at idle. So I take the intake off and I seal the hell out of it around the intake ports and water ports. Of course it leaks coolant still and it's burning oil at idle way worse than ever. The #3 plug is oil fouled.:banghead:
The intake is sealed tight at the top but not tight on the bottom of the intake port of the head. So I took my intake to the guy that milled the block and he said it should have .035 off both surfaces. I thought it would have to be angled milled to get it to seal but he said no.
I'm having a hard time wrapping my head around this. If your taking off .035 all the way the intake would sit a little lower but still wouldn't be tight at the bottom of the intake port.
Can somebody correct me if I'm wrong. He's gonna cut it next week so I need to find out if it's going to work.