Step 1: Understanding SHM of a pendulum.
The given equation $\theta = \theta_0 \cos(4t+\phi)$ represents angular SHM of a simple pendulum. Here angular frequency is:
\[
\omega = 4 \, \text{rad s}^{-1}
\]
For a simple pendulum, $\omega^2 = \frac{g}{l}$, which connects geometry with dynamics.
Step 2: Finding length of pendulum using angular frequency.
Using:
\[
\omega^2 = \frac{g}{l}
\Rightarrow l = \frac{g}{\omega^2}
\]
Substituting $g=10$ and $\omega=4$:
\[
l = \frac{10}{16} = 0.625 \, \text{m}
\]
This step is crucial because energy expression depends on moment of inertia.
Step 3: Expression for maximum kinetic energy.
For small oscillations, maximum kinetic energy equals total energy:
\[
KE_{\max} = \frac{1}{2} m l^2 \omega^2 \theta_0^2
\]
This comes from rotational SHM where $I = ml^2$.
Step 4: Substituting numerical values.
Given:
\[
m = 0.04 \, \text{kg}, \quad l = 0.625, \quad \omega = 4
\]
So:
\[
KE_{\max} = \frac{1}{2} \times 0.04 \times (0.625)^2 \times 16 \times \theta_0^2
\]
Now simplifying step-by-step:
\[
\frac{1}{2} \times 0.04 = 0.02
\]
\[
(0.625)^2 = 0.390625
\]
\[
0.02 \times 0.390625 = 0.0078125
\]
\[
0.0078125 \times 16 = 0.125
\]
So:
\[
KE_{\max} = 0.125 \, \theta_0^2
\]
Step 5: Solving for $\theta_0$.
Given:
\[
1.25 \times 10^{-3} = 0.125 \theta_0^2
\]
\[
\theta_0^2 = \frac{1.25 \times 10^{-3}}{0.125} = 10^{-2}
\]
\[
\theta_0 = 0.1 \, \text{rad}
\]
Step 6: Final conclusion.
\[
\boxed{0.1 \, \text{rad}}
\]