Unless you create a squish morph yourself, it will have limitations. There are some squish morphs for rope or clothes, but they probably won't look right from some angles because they go all the way around.
The way I do the grabbing is with physics links. The
Doggystyle Dream scene by Fenix demonstrates this. The scene has his hands linked to her hip. Note that you do NOT link to the control node (HipControl), you link to Hip. You have to be careful with physics links. In this scene, there is only one pose. There is also a button to start the action. If you save different pose presets with physics links, you have to be careful not to get people twisted up like pretzels. Having a separate button to start the action usually works. There are other tricks. You can save the pose preset with the link to hip (or thigh) defined, but not active (Physics Link). Leave the Position, Rotation at On. When the action starts, you can have a trigger that switches them to Physics Link.
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