SPDs for children

I've put a spare set of SPD pedals on Jnr's bike and we've got him a pair of SPD shoes. Considering a child is unlikely to know how the cleats should be set up for comfort (or explain clearly if there's a problem), what's the best way to ensure the cleats are set up properly for a child?
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Position the cleat accordingly, i.e. if his toes point inwards by "x" degrees, then angle the cleat outwards (from above) so that his foot points in the natural direction
Make the fore/aft position neutral
He'll soon tell you if his knee(s) hurt, but if there's a reasonable degree of float it should be ok. we've had 8-10 year olds convert and have had no problems I'm aware of.
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