Did you keep the AAZ injectors? You can put an entire AAZ fuel system on a 1.6, but swapping an AAZ pump on a motor with 1.6 injectors can get a little funky due to the different height of each engine's injectors. That means having to futz with different sets of injector lines to get it all to line up. Just putting that out there if you haven't considered that yet.
As far as making an NA into a TD, know this; TDs had oil jets in their blocks to cool their cylinders, while NAs don't. This means being careful with what amount of boost you can safely run without melting your piston from excess heat. Nothing over 12 psi sustained is what I would recommend when DDing. An EGT gauge is a MUST with this setup since it allows you to keep tabs on exhaust temperature so you don't grenade your engine from heat. A multi-layer steel (MLS) head gasket and head studs are essential as well to keep the head on, especially if it's an 11mm block! Remember, if you plan on running this as a DD also, err on the conservative side, then take small steps up with boost and fueling increases. NEVER RUN YOUR CAR UNTESTED AFTER TUNING BOOST/FUEL.
As far as the suspension goes, I like what I'm hearing on the spring/strut/strut housing selection, but I would also recommend installing as many chassis braces as your class can allow. Of particular importance for a MK1 is the installation of a lower control arm stress bar, or 'K-bar'. This solves the common issue of chassis flex at the end of the lower control arm frame horns, which causes unwanted camber tuck under harsh turns which could cause some under-steer on the stock US rabbit suspension setup (especially with those soft roll-prone springs!). Get tighter steering rack bushings on while you're down there. As far as sway bars, it's a bit of a toss-up; some just like to run a stock rear bar from the Cabriolet (helps induce some over-steer to counter any nose-heaviness), some go full-on and put big bars front and rear. That's not an are I'm fully sure of, so it's your call.
RESIST THE URGE TO PUT POLY MOTOR MOUNT BUSHINGS IN! They will rattle your teeth out, as well as every screw and bolt in the car.

The most I'd suggest is stock HD mounts, and only in heavy areas like the passenger mount and driver side trans mount, maybe the rear trans mount as well (that one you can feel through the floor).
Upgrade to MK1 GTI 9.4" front vented rotors and corresponding pads (Hawk HPS are good street pads; low dust with good bite); you can still use the stock caliper. If you want to go to 14" wheels you can consider even upgrading to 10.1" rotors, but those lock up faster and affect your pedal feel. As for the rear, you'd be surprised what a set of good drums do. Consider a set of 200mm Caddy/Mk3 Jetta rear drums; you don't need to drop extra coin for a new master cylinder and parking brake cables. If you must roll all-disc, just go full 16v Scirocco. However, you will have to source EVERYTHING; Pads, rotors, rear axle stubs, parking brake cables, master cylinder and brake booster . . . . everything except the body brake lines basically. That is IF you can even still find a 16v to pull parts from; good luck with that. And don't forget to flush your old fluid. Last thing I swear; braided brake hoses give some killer bite to the stop pedal, so food for thought.
Bottom line IMO: MK1 GTI fronts w/ aftermarket pads, Caddy rears, good fluid, adjusted brakes, new brake hoses, maybe some braided ones if you feelin' fancy, huh.

You'd be surprised at how well these light (1800-1950 lbs!) cars stop with a good-working system of well-thought mix of OEM+ components. Never forget, VW can be German for LEGO.
So yeah, that's kind of all I gotta say right now. Sorry for the wall of text, but I've been doing research also and thought I'd save some searching for you. lemme know If I didn't completely address something or if what I wrote leaves you with questions. Have fun reading!