Oh hell just get yerself a small lift n cut fenders toss on some 54's and be done!
I would never run spacers. I prefer wheels with the correct backspacing. 35x12.5 does not rub on 9" wheels with 4.5" backspacing. There may be a little wiggle room in there but you can't run a 5" or greater backspacing and expect to not rub before full lock with a larger/wider tire.
Truck currently has 265/75R16 which I believe is about as wide as is practical on a stock steel wheel. Can anyone confirm the stock steelies are 7" wide? Trying to determine what wheels I can use. Cost effective 17" that I like and know works (9" wide with 4.5" backspacing) is on backorder. That is Ultra PN 164-7981P. Around $130 each I believe vs 2x-3x that price for wheels at least as wide with 4"-4.5" backspacing of similar style in other brands.
Dunk, what is the load rating on those Ultra wheels?
Stock on my 90 xlt is 6" which is a bit to narrow for 265/75 (tried it, not to bad, but couldn't get it to wear even. The center wore to fast even at 55 psi empty). 265/75 is the same height as 235/85 (stock)
Both the factory height and lifted are D60 trucks.