A magnetic recording head that includes a combined IN element and an MR element is heat treated under two types of magnetic fields. A rotating magnetic field, having a first magnetic field intensity, is applied for a time while the magnetic recording head is at an elevated temperature. Then, part-way during cooling of the magnetic head, the rotating magnetic field is replaced by a direct (non-rotating) magnetic field having a second magnetic field intensity. The second magnetic field intensity is lower than the first magnetic field intensity, whereby the properties of both the IN element and the MR element are maintained at high values.