We have a router bit that is smaller in width than the cut to be made so we will be making two cuts on each dado. It is important to remember that the two cuts always have to be on the cutting side of the bit.
First mount the spacer on the router fence then layout the distance from the inside edge of the dado to set the fence.
Clamp into position and make the entire inside cuts at this fence position.
Keep the fence clamped in position and remove the spacer. Now make all of the final cuts.

To make more dados in other positions just repeat the above setup. Remount the spacer, reset the fence position and make the first cut. The remove the spacer and make the final cut.
We have easily made a 1-1/2” dado with a 1” straight router bit.
Be safe and always set up to make the first cut on the inside edge of the dado. Remember to check to make sure that the second cut is always made on the cutting side of the router bit.