The Owners Handbook says 5/8" for the ES2 and Model 18,
(and 7/16" for the 16H and Big4) 1948-54.
I'd say to set it there, you can always back it off a shade if it doesn't like it or runs hot.
If you run it retarded though, it will likely run hot(ter), and if you can't advance it any more,
it may not be good...
I also have a prewar ES2, and it has a short reach 18mm plug in a short reach spark plug hole,
so Nortons seem to have known what they were doing then, no deep dark holes then.
It hasn't done any miles yet either though, so we will see.