This is a copy of the setup instructions I wrote and distributed to my students at a college in New York.
How to Adjust Color Settings
In order to adjust Photoshop’s Color Settings so that they coincide with professional graphic arts settings for images to be reproduced in print media, follow these steps:
Go to Edit>Color Settings…
On the right side of the Color Settings panel, note the fifth item in the list. (1)
a. If it reads More Options, click on it. The Color Settings panel will become
longer and the item will change to Fewer Options
b. If it reads Fewer Options, do nothing.
The panel is divided into several sections. The items shown below in bold are the sections we are going to adjust.
Working Spaces Adjustment
Adjacent to RGB: Use the up/down triangles and choose Adobe RGB (1998) (2)
Adjacent to CMYK, the adjustment requires a few steps:
1. Use the up/down triangles, go to the top of the list and choose:
Custom CMYK (3)
2. You will be presented with another menu.
In that menu is a section marked Separation Options
In that section, adjacent to Black Generation, choose: Light
Note: If you notice the black curve in the Gray Ramp, changing the designation from Medium (the default) to Light, moves the beginning of the curve from about 25% to about 50%, so that black does not contribute to the lighter colors. This makes it better suited to adjusting light CMYK colors such as flesh tones
Click OK
Color Management Policies (4)
Adjacent to RGB: Choose Preserve Embedded Profiles
Adjacent to CMYK: Choose Preserve Embedded Profiles
Adjacent to Gray: Choose Preserve Embedded Profiles
Put check marks in the two boxes indicated.
Conversion Options
Adjacent to Intent: Choose: Relative Colorimetric (5)
No other fields need changes.
Click OK.
These settings will remain in effect until you choose to change them.
Good job!