Setup for soft skin/flesh?

Hello! :3

Does anyone have a good setup for making character models deform in the same way real skin/flesh would?
Not worried about muscle deformation, I have shape keys set up for that. It’s more for making the model deform realistically to outer elements - like, for example, how the skin/flesh on your arm will mold to your hand when you grab it.

I’ve tried using cloth and mesh deform combos - but even at minimal distance settings, there’s alot of space between the cloth object and the collison object, so it doesn’t really work. (Plus the deformations tend to just not look very natural anyway) I’ve not really tried soft body yet, would that work?

Any help, ideas or pointers would be greatly appreciated <3

~Also I apologize if this is in the wrong forum, I could not think which I should put it in x.x