If I want to move away from Microsoft DHCP Server, in order to make use of my DHCP Server that comes with my Cisco devices, how should the device be configured so that PXE requests function correctly?

Use the following options on the Cisco DHCP server:

ip dhcp pool <name>
     network <ip of network> <subnet mask>
     bootfile BStrap\X86pc\BStrap.0
     next-server <ip of PXE Server>
     default-router <network default gateway>
     netbios-name-server <one or more ip adresses>
     option 43 hex <hex values obtained from PXE Forced Mode Utility>
     option 66 ascii "name of PXE Server"
     option 60 ascii "PXEClient"
     dns-server <one or more ip addresses>
     option 150 <ip of PXE Server>
     domain-name <domain name>

NOTE: In some instances with Cisco IOS operating in Hybrid mode, enabling option 60 resulted in ProxyDHCP errors and needed to be removed.