Dear Silk,
you are looking to restore a CJ7. If I were in your shoes, I would go for a 5L, or a 3L even.
1 KZ is a stronger engine. I agree with Sohaib Kiani. Still, I acknowledge my idiosyncracies.
I think a non-turbo, non-electronic, simple engine, with a little more than bare-minimum horse-power is a good option.
And if I were you, I would not be offended by Suhaib Kiani"s remarks. All he ment was to make a choice between a limited number of engines. Looking at Nissan, 6-cylinder petrol, turbo petrol, or so and so will make things complicated. No hard feelings intended.
So, other than the difference of opinion on 5L versus 1 KZ, I agree with Suhaib saheb.
God Bless you and all Off Roaders, including the potential off-roaders.