You will need to mill the head if you want to maintain horsepower. The later models increased the combustion chamber size to lower compression so lower octane fuel could be run and to reduce emissions. In addition the original head gaskets are hard to find and modern composite gaskets are thicker than the original.
You need to mill about .015 if you use the Fel Pro head gasket, which seems to be the most popular here. About .010 for each 2 cc you want to reduce the chamber, ie .050 will reduce chamber size by approximately 10 cc. Don't quote me because I don't remember exactly, I'm sure someone here will but the Granada had about 63 cc and you probably want about 51 cc to maintain original.
Most mill between .060 to .075 from the later model head for use on the early 200 ci engines. I believe I've read that .090 can safely be removed if you want to raise your compression above stock.
Do a search on milling the head it will bring up all the info you need.
Have fun