To answer your question, you will need a good heat source to bend the hammer. If the hammer is as close as you say, then bending the arch of the hammer up and out is all that would need to be done. You will need to heat the arch until it is red hot, and then use either tongs or hammer to bend it out. The arch is behind the face of the hammer with that skirt that is rubbing. It is round, and extends in front of the vertical post that goes down to the bolster. The hammer cock, or spur, is on the backside of the post. You will have to do a little trial and error fitting, for such a small job would not warrant making a jig. But, with the help of a friend, you should be able to do it inside an hour. Once the hammer is bent to fit, You will have to cool the heated piece. Heat it back to red hot, and then douse it in oil. Motor oil works fine, but be prepared for flames, and have a lid to put over the container. Then clean the hammer, and put it on a baking sheet in the oven at 450 degrees for 2 hours to temper it, and then turn the oven off and let it cool slowly overnight. You can reinstall the hammer the next day.
Do test the hammer to see how the face of the hammer is actually striking the nipple. Use a napkin, or paper towel folded, over the nipple, cock and fire the hammer. If it is striking correctly, you will get a donut punch hole in your paper. If not, you get some portion of an arc. You will need to grind down the high parts of the hammer face until it is hitting a new nipple evenly all around the circle. Otherwise, the nipplel will be slowly bent on one side or another, and you will start having misfires until the cap has been formed to the worn nipple, before it finally goes off. Use some lipstick, or stock inletting black, or shoe polish, on the top edge of a new nipple and lower the hammer down onto the stuff to mark the high spots on the hammerface. Use a dremel tool with a small grinding bit to grind away the face that receives the marking dyes. Keep testing and grinding until you cut a round hole. You not only will insure good ignition, but long life to your nipples.
If you can, bend that hammer so that the nipple is equal distance from the skirt all around the neck of the nipple. That should center the nipple, and it makes it easier to grind that face so it hits the nipple square. Leave the skirt in tact. Its a major safety device to protect your eyes.