They should be almost lined up with the back of the doors. That is where the bolts are on my blazer anyway. They require a 15mm socket to turn them. 1 full rotation of the bolt equals 1/4" of lift. I would not crank them over 1 1/2" because you will start to get really bad cv angles and wear out front end parts faster.
I can go take some pics of what the bolts look like on my blazer in a few minutes.