Engine Test Stand using K member?

Frankly I see nothing wrong with your idea. You say "dolly" do you already have one? If not they are not that hard to build if you can cut/ weld basic metal, square tube, channel, etc. As others said you need a transmission installed or at least a flywheel/ bell and and something to anchor the rear of the engine.

Trans: Automatic would require a jumper tube for the cooler, a rear yoke, and ATF installed. You don't want to do so dry.

Without a trans, you need a bell/ flywheel/ starter and fabricate some bracket from the bell to anchor the rear, not difficult

Alternatively, you could use a flywheel and fab a plate to mount the starter. I have used just the engine plate off a scattershield. This is not "right" but I have "other starters" so if I break one it's no big deal

You really should at least fill the engine with coolant, even if no rad, so you'd need a jumper hose / tube of some sort to bring the lower outlet up even/ near the top outlet.

Controls? Really all you need is an oil pressure gauge, and maybe a temp gauge, but you can use "your hands" or a handheld infra red thermometer. They are nowadays cheap and easy

Electrically you need a simple ignition system, a battery and battery cables, and just basic jumpers to operate the starter.
What you have for a distributor will determine that. I often use an HEI module and coil "in a box."

This works with Mopar style breakerless distributors
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I know it's "redneck" I've even test fired engines for a short time on an an engine stand, with makeshift support under the pan

This here is about the most redneck "engine run" I ever did..........
https://www.forabodiesonly.com/mopar/threads/lmfao-anybody-figure-out-what-this-is.385613/
Made redneck adapter to mount AFB carb onto EFI magnum



Engine stand, engine plate, flywheel, starter mount........

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A little "support"........

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The emergency ignition box + a breakerless dist.............

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