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I don't think you want to do what you're doing. There is a seal that goes in the back of the transmission that seals the area between it and the transfer case. Eventually you may have ATF pouring out the back of the transfer case. That slot you're filling was put there to warn of a leaking transmission seal. I believe the Dodge part # is 83503108 and NAPA number 19601. Seems like Dodge charges around $45 and all the other guys are a fraction of that. Also, your rear bearing there looks kind of dirty. That may just be the photo.
EXACTLY
 

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What is this channel on the trans for, (outlined in red)?
I mated the T case to the trans sealing it with Anaerobic flange sealant 2 days ago. This morning started lifting the engine/trans/T case to put it in the Jeep and ATF started pouring out between the T case and trans flange.
On inspection after I separated the trans from the T case the Anaerobic flange sealant has done it's job and sealed it up tight. But there has to be a direct route to the outside via that channel. It's a case of miss matched parts, holes?

I'm in the process of filling that channel up with JB weld to be able to plug the leak, I think.
There is a seal, that goes into the trans tail housing, aside this, there is another issue many overlook, that is "the output shaft going deep enough to seal at the seal, or the output or input shaft being too long".
Some input shafts require machining off some length "depends on thickness of clocking ring".
 

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In the first pic of the housing with the studs, is that a seal in the housing? Is that housing on the transmission?
1st picture is the t-case input shaft w/adapter clocking ring, the 2nd is the trans output, which requires a seal to seal input shaft when assembled.
 

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Yes, there is a seal there, too seal input shaft at the t-case...
 

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Every 47RH/RE I have ever seen has the drip slot.
 

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You can seal the drip slot, providing, you install a vent at the O/D too...this is what I do.
 

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Here is my 47/48RE HYBRID trans w/OD & GM NP241C
Motor vehicle Plant Bumper Automotive wheel system Automotive design
 
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That's a good idea to write on the outside the improvements done on the inside. That way you can't forget what's been done. At least for me that could be a problem. I installed the TFOD Shift Kit-Diesel on my trans. I engraved the shift kit name on the valve body for reference. Reading up about the 48RE Shift Kit sounds like the same improvements as mine. Have you had this combo on the road yet?
Yes, about 3.5k miles on it, I run it (the trans) cold, since I'm in the deep south. Some comment too cold is no good, that would be true, if I ran DINO trans fluid, however, its AMSOIL synthetic trans fluid which protects way below and above standard operating temps. The trans cooler is a BIG stand alone w/SS braided Teflon lines as used in medium trucks.
My valve body center section is billet 48re with standard top and bottom sections and every mod and update there is.
The billet torque converter is a low stall - 400rpm, trans holding is at 850 ft lbs.
Automotive tire Automotive exterior Bumper Gas Engineering
 
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Here is an image of my trans cooler...
Automotive parking light Grille Automotive lighting Automotive tire Hood
 
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