7 degrees is perfect.
Yes you can check castor by doing what you did, and the calculation 9-#=caster
Alot of people use the diff cover bolts, basically the same. I just had an alignment and used my "angle finder/protractor" atop the upper balljoint and basically got the same caster reading as the alignment rack said.
I have 11 degrees now, way too much, I get death wobble frequently if I hit a bump 35 mph and above.
I followed Yucca Man's website specs for adjusting control arms for 7" of lift (which I have) with the stock CA brackets and that got me 11 degrees of caster.
My front pinion angle isn't perfect right now but if I reduce my amount of caster by about 4 degrees it should be near perfect in terms of lining up with the transfer case output.
Good luck!