Best time to install the steering shaft extension is while you have the body raised off the frame for installing the lift blocks. This will ensure the most working room for installing the extension. Be sure to mark both sides of the steering shaft prior to separating it so that you can align it after the extension is installed. Also, you may want to use something to keep the steering wheel from turning while you have the shaft separated.
If you find there is not enough clearance to fit the spacer in place, try lifting the driver's side of the body up again (like you did when you installed the body lift blocks).