i am using an arduino micro and I want to use a laboratory power supply instead of spplying it with power using my laptop.
So my qustion is: What adjustments do I need for the micro? 7-12V is recommended for voltage but what about current? How much current can I give the micro?
You cannot give it anything, it will take only what it needs. I highly recommend going with your solution of 7-12V from the lab supply and set it for about 1A to start. You can adjust it down but watch the voltage, if it starts to drop raise it up a bit as you are going into current limit with the power supply. at that point check to be sure something is not faulting.
I do not use the 5V pin as an input in my designs, I usually have a SEPIC converter on Vin set at about 8V out. This keeps the power glitches down and the additional filtering for the onboard supply only helps.
I personally do not like the microprocessor pins including power out in the air as they act as an antenna. If they need to go off board I protect them. Ground is the only exception, but keep the wire large enough. I have a large transmitting tower behind my place which a good golfer could hit with a long drive consequently I have more electrical noise to contend with.
On a bench power supply the current adjustment is not adjusting the current, it is setting the maximum current before the power supply starts to shut down. It shuts down by reducing the voltage.