To lengthen the posts I used brass tubing. I popped the tuner buttons off the Chinese tuners and soldered tubing that had the inside diameter the same as the outside diameter as the steel shaft. I then had tubing that would slip inside the initial tubing to bring the size down to what the buttons required. The tubing came from a hobby store and was what I had on hand. it worked O.K. but required 3 sizes of tubing and looked messy. When (if) I do this again I will find some metal rod the same diameter as the tuner shaft and just use a small piece of tubing to connect them.
You are right - if a person makes an identical copy of the peghead the posts will be above the worms. I used the original as a pattern so that is how they ended up. This seems to work O.K. for the lower tension of gut strings (time will tell) but not steel. If the post was more rigidly held as it is in the original tuners by bearing plates on both sides of the cog it might also hold up O.K.. Again if a metal bushing was fitted around the tuner post in such a way as to press the cog into the worm to counteract the pull of the strings that might also work.
In a "do over" I would be inclined to modify the design slightly and have the worms above the cogs. The string tension on the posts then acts to keep the cogs meshed with the worms.
Here is a supplier of small tubing in various metals and thin metal sheets for making the back plate as well as all kinds of small useful metal bits:
https://www.ksmetals.com/