Heya
Is there a way to control the transition from lit to shaded on a model? for what I’m currently doing I’d like the transition to be smoother, kinda like this mock-up;
I’m not really sure, but I think that would require a custom shader model. which was possible to do in UDK but not currently in UE4.
Hmm i was afraid so, although I have seen that some people are doing cel shading using a post process material, would that be a possibility?
The reason the edge would become blurrier is if the light source has a larger surface area, that’s something that’s supported with the distance field ray tracing shadows, but that doesn’t work on skeletal meshes.
You could almost fake that effect with SSS though, you could try messing with that effect.
I’m getting some acceptable results with SSS, Thank you darthviper107!! 
Yeah. In the real world, the translucency and volume of the object will alter the shadow. Think of what the volumetric lighting effect in UE3 does, and picture that happening around your skin. For solid objects, and most objects really are quite solid, shadows are sharp. But for softer objects with subsurface scattering, shadows are soft. Plants and paper are a special case: they have loads of subsurface scattering, but the volume is very thin, so shadows cast on the front of those objects are sharp, but cast from behind, they’re soft.