My friend is 5.5 with 27" inseme as well. He started on a Ninja 250, and 2 years later he got a Honda VFR (it is a big bike). He didn't not shave the seat nor lower the bike. He touches the ground with the tip of his feet, and he is doing fine. at a stop light, he lean the bike a little to the left side, and rest it on the left foot. and he rests the right foot on the foot pig.
He has more troubles finding riding pants that fit him that riding a bike..!