John,
Your sketch leaves a lot to be desired. You have an ø8 mm spud sticking eccentrically from the end of a ø12 mm round, right? The edge of the ø8 mm spud should be tangent to the ø12 mm round, right?
The centerline of the ø12 mm round is 6 mm from the edges (duh). The centerline of the ø8 mm spud will be 4 mm "inside" the OD of the round (right?). Therefore, you need to offset the ø12 mm round by (6 - 4 =) 2 mm to make everything line up. An independent 4-jaw chuck is the way to go if you have such a beast. Otherwise, you stick a 2 mm shim inside one jaw of your 3-jaw chuck, tighten everything down, and walk through all the alignments to make sure that nothing is tipping. If my assumptions (stated above) are correct, this should work for you...