Hi, 16GB RAM is enough (you can even handle with 8GB but that can be quite a pain), a slow CPU will just make compiling slower (especially shader compiling), so it is just a general pain. Too low GPU memory can lead to problems as the crashes you’ve experienced, as you run out of GPU memory. Your GPU is quite slow, so I would lower all the graphic settings in UE, maybe even switch to mobile rendering. Further with 2GB of gpu memory, you should close all other programs that consume graphic memory, and close open asset windows in UE if you do not need them open right now.
Also reduce the texture streaming pool size (r.streaming.poolsize), else that can take up to 1GB of your gpu memory, not leaving much for the rest.