I am doing something very similar.
I took a 2000 ram engine. Took it apart...... Put it back with stock parts. Im putting it in my 87 Dakota.
I ended up going HEI ignition, edelbrock intake and a 670 carb.
I looked at changing the cam, but keep in mind, an increase in lift, and especially duration, moves the power band up.....
I really wanted to swap cams, but it was going to run 5-600 dollars to do, if not more.
I decided to keep mine stock for now.
For a small increase, have you looked at thinner head gaskets?