Steering knuckle scraping?

[stepside-mitch]

I'm running stock 15x8 rallys and the lower control arm of the spindle is grinding a little bit. Common issue but I also noticed that the steering knuckle digs into wheel. Is this also a common problem? I bought some cheapo 5/16" wheel spacers for the time being but they won't last. I really don't feel like grinding too much off the knuckle. Any help would be greatly appreciated.

By the way, they are McGaughys 2.5" drop spindles. stock springs