My practice has always been to use a star in the north close to the meridian and near the celestial equator (not overhead) for adjusting azimuth. For the altitude adjustments use a star low in the east or west. In both cases you need to monitor changes in declination (up or down in the eyepiece). The exact mount adjustment needed for movement up or down in the eyepiece will depend on the optical system and whether you've chosen the eastern or western horizon. K3CCDTools will certainly speed up the process.
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