Transformer, does your lathe have zero-setting dials? I can't tell from the picture but I would expect it does. If it does then touch off on your part and move the cutter clear of the work without touching the crossfeed. Zero the dial and turn the crossfeed some amount - say 0.010". Make another cut, back out the crossfeed and move the carriage clear of the work. Measure the OD of your work and go back to your 0.010" setting and re-zero the dial. Now dial in your desired depth of cut and see if the resultant OD is reduced by twice the amount you dialed in. If so, you're set.
As the others have pointed out, the way to deal with backlash is to always set your depth of cut by backing off a half turn or so, then turning your crossfeed wheel clockwise or back to your new setting.