The .048 squish is close where it needs to be. Squish is another detonation preventative. It hides the a percentage of the fuel/air from the radiant heat from the spark plug. Squish should generally be between .015 and .060 to be effective. Sounds like you need a larger dome. Read the section on combustion in this book. It'll give you a good understanding of what needs to be done.
My mostly stock 87 motor reads about 160psi compression. I'm gonna hone and do piston and rings in it this winter. 210psi is a little high. but like what motorgeek said, if everything else is cool, such as bearings, crankshaft, piston, ect, you should be okay with race fuel.
Read this link. Great info.
http://www.datafan.com/Horsepower_Blog/gordon-jennings-two-stroke-tuners-handbook/