With a stock 1600 cc engine and a stock cam, the installation of heavy duty springs is over kill. Install springs that will keep the valves from floating, not just rob horse power as the cam tries to open the valves. It also puts undue wear on the valve train and in some circumstances can cause a push rod to bend. If you're going to install 1.4 ration rockers, make sure the geometry is correct as you don't want the rockers wobbling or pushing the valves under friction resistance. If you do this, you'll also want to install solid rocker shafts and get rid of the wave washers and spring retainers.
Porting and polishing the heads will make a significant difference and the best thing you can do is to get rid of the Kadron's and buy a pair of small venturi Webers (32 or 34) If you do purchase a set of carb's then you'll have to jet them properly to make the engine run smoothly. While you're at it, have the intake manifolds ported and matched to the head intake ports.
An exhaust system in most cases makes more noise than horsepower but it does allow the engine to scavenge exhaust gasses more completely provided it's an equal length system.
Additionally, 87 mm pistons and cylinders can be installed without cutting your case. This will bring the displacement up to 1641 cc's from your current 1585 cc's (A stock 1600cc VW with 85.5 mm pistons and a 69 mm stroke crankshaft is actually 1585cc's.)
If your plan is to stroke the engine and add larger pistons then extra cooling is desired. If the engine has a dog house cooler than that's a good start. Most large bore and stroke engines need extra cooling via an external oil cooler with a fan. You still run the risk of having the heads run too hot but that can be monitored via a cylinder head temperature gauge.
As soon as you start tinkering with the stock engine, the dominoes start falling. In other words, if you do this, then you have to do that etc