Turn off your Troy-Bilt K161T tiller.
Find the spark plug on the side of the tiller's 7 HP Kohler engine. Remove the thin, black spark plug wire from the back of the plug as a safety precaution.
Look to the top rear of the small engine assembly for the distinctive flywheel, which is the circular iron piece. The iron cover on the flywheel has numerous, visible bolts holding it in place. Directly in front of the Troy-Bilt K161T tiller's flywheel is the magnetic coil or magneto. The very narrow gap between these two parts is the engine's air gap.
Measure the air gap between the flywheel and magnet with a caliper. This will allow you to understand the necessary adjustments to the magnet and flywheel. The air gap should be between 0.010 and 0.015 of an inch in width. Adjustments will be necessary if the air gap lies outside of this range.
Loosen the flywheel on the Troy-Bilt K161T tiller's engine by loosening the various bolts on the flywheel's cover with a socket wrench. Apply pressure to the flywheel to move it either slightly closer or farther away from the magnet, depending on what your measurement suggested.
Measure the air gap again with your caliper before tightening the flywheel back into place. Ensure the air gap is between 0.010 and 0.015 of an inch in width. Make further adjustments to the flywheel in the same manner as before, if necessary.
Tighten the flywheel's bolts with your socket wrench.
Reconnect the black spark plug wire to the rear of the spark plug.