Best way to reshape a body plus clothing?

I have a low-poly body I’ve modeled in Blender that I want to be able to reshape into different body types. I also need to be able to reshape clothing to fit. Preferably, I’d like to be able to reshape both at the same time.

What I have set up right now is a mesh deform modifier, which seems to work pretty well, except for around the legs, since the legs are so close together when I try reshaping them with the cage mesh, the cage ends up overlapping itself sometimes which does weird things to the modifier.

I’ve thought about just wrapping both legs together instead of having them wrapped separately, but I need the legs to line up with the skeleton. I’ve also tried rotating the legs apart to give more room between, but the modifier doesn’t seem to like having the legs rotated. I can give more details if needed, I just have a feeling that I’m going about this entirely wrong.

You can certainly do the character with shape keys (under data). You can make different body types and faces then even mix them together to create a greater variation. Shape keys are like morphs btw.

As for clothing you may struggle with this. Plus if you do find a way that suits you you will distort the textures (if you are using them). i.e. stretch out the texture so it doesn’t look so nice. You will need to unwrap again etc.