Firstly get rid of the idea of having a deeply cut centre shot, arrow pass, a really bad idea with that stave. Its going to need heat correction anyway because of that staves natural tip alignment, so you will be able to tweak the string alignment so it shoots like a centreshot bow.
As for the knot, I would follow the interior curve of the knot from the handle, up through the fades, to the widening of the limb. Remove most of the knot at this stage. Don't touch any wood yet on the other side off the fade at the handle area. See how far the knot goes in on the belly side. This will give you an idea of how much wood you need to keep for a strong fade. As you haven't removed any wood on the clear side of the fade yet, you can easily incrementally take more off until there is no excess. Once again it does mean no deeply cut arrow shelf on this stave.
Follow the flow of the grain even in the handle, and you can steam bend the handle with no worries about cracking the handle, and get the tips to line up with the arrow pass.
Good luck.
Hamish.
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