I don't have a Kindle, so if my mutterings are useless, just ignore them.
Just to clarify, you are asking about a Raised / Up cap, not a drop-cap, right?
Drop-caps can be tweaked with both *height* and *line-height*, but it seems like Raised caps only respond to line-height. If this book is only for your own use, you might consider setting the line-height to 120% globally, in body{} or in your p{} paragraph styling. (I know, not an elegant solution.)
The attached screen-shot compares display with default line-height, vs. line-height set to 120 in my paragraph style.
p {
margin: .25em 0;
text-indent: 1.5em;
line-height: 120%;
}
Maybe one of the gurus will be inspired to find a solution...
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