Yes, judging from your pics, there's probably enough room to adjust the preload if you just cut the steerer flush with the stem. The expander plug will then sit on top of the steerer and take up another 1-2mm and there's about 3mm of clearance for compression, which should be enough.
Do keep in mind however, that people had problems with headset play on this particular frame. I think most guys use micro spacers between the upper headset cap and the upper headset bearing. If you need to use one of those to eliminate headset play, that will require another milimeter or so of steerer length. Maybe someone else can chime in to answer that.