In case anyone is interested, I've made some progress on my production values in iClone. I'm rendering high-resolution: (1) flat-cel-shaded, and (2) more normally with a point light. I processed (2) to greyscale, and posterized it enough to pick out the highlights against black (as you can see in the final frame). Finally I composited (2) over (1) with low opacity. Voila, cel shading with cel lighting. Ignore the wretched video compression; the original video is 2160 pixels tall and looks fab.



Animating now to life itself --Walt Whitman 

that looks fantastic, what do (1) and (2) look like separately?

(1) Looks like the character without the highlights. (2) Looks like only the highlights, as shown in the last frame of the video.

Animating now to life itself --Walt Whitman