How to raise your stem on a thread-less headset.

In this picture, there are 2 spacers above the stem that can be moved to underneath the stem. That will raise the stem the amount of the spacers.

In picture, the top cap and 2 pacers have been removed.

Now the stem can be removed, and the 2 spacers that were removed in the previous step can be installed underneath the stem.

Re-installing the stem with the spacers now underneath it.

Tightening the top cap back on. Note you should not tighten this bolt very much! It should only be tightened enough that the fork does not "knock" in the headset. If the bars and fork don't rotate freely, you've overtightened this bolt. After you've installed the top cap, tighten the stem bolts as well (these should be snug).

Here's what the bike looks like now with the bars raised 4 centimeters (the width of the 2 spacers)