Set the initial timing to 12. Then close down the idle screw to get 900-950 rpm. That is probably where it will wind up at idle wise? You need a vacuum gauge and you need to work those three eliments together. Idle set screw, initial advance, highest idle vacuum.
If it winds up at 16 degrees initial timing, so what? Don't fight that. The same with total timing. Don't expect that to be 32. That is for big blocks. Probably 34-36 is where it will run best. It isn't necessarily the total advance, it is the rate at which you get it. All in at 2,000 is way to fast. Whatever your cruise rpm is, is what you would like to have close to all in advance, so all in probably around 3,000 rpm.
Are you using an vacuum advance distributor?
You might be able to get it to idle down to 850rpm at idle. That would be better for the automatic transmission, if you can get it, otherwise the brakes won't hold the car well at idle. I'm not sure that you can though?
It's running on now after you shut it off because the throttle plate is open too much at idle. You need to close that down.