There is more than one adjustment.
For the star nut, for a starting point hold the clutch lever in and tighten the star nut by hand until flush then +2 notches. Test ride it and adjust as needed from there.
For the internal preload spring, you have to remove the clutch cable guide and stick a flathead in the hole to catch the spring adjuster, then rotate the rear wheel BACKWARDS to tighten and FORWARD to loosen. The preload spring will make the clutch plate press harder against the pads at the expense of less travel and lever feel.