Bicycle Tutor

Hi Alex, Thanks for your useful website.
I have convinced my roommate to switch from her toe straps to clip style (SPD) pedals. She claims to have knee pains from using the old straps since they confine her to a posture where her toes are pointed straight forward (in the direction of travel) and knee bent inward. Her natural (and more comfortable) stance will point her knees forward but her ankle and toe will point slightly to the outside.
My question is: do you suggest to alter the pedals on the bike or the cleat on the shoe (tilting either as necessary) to correct for this?

You can usually rotate the cleat on the shoe a little bit either way until you find a comfortable angle.