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Re: lift
If your going with 35" tires, you might as well go SOA up front, and flip the shackle in the rear. This should net you about 5" of lift and you don't even have to buy new springs. Steering modifications are the hardest part.
Your axles should hold up well enough to 35" tires in mud and other loose conditions. I'd be wary on high-traction terrain like rocks though.
You also should look into re-gearing to 4.10s at least to keep the power up to spin those larger tires.