How do I create a more dynamic cel shaded material?

What I’m Doing
Currently I’m using the light vector (from a direct light) fed into a materiel parameter collection, which is then passed to my characters material to create cel shading effect via a ramp texture.

What I want to achieve
I want to create a more dynamic system that is effected by multiple lights, and a material instance that can be placed on actors in the scene so they become shaded properly.

The problem
That would only be possible if each material parameter could be set on an instanced basses, and I believe that is not the case. Creating a new materiel parameter for each object is out of the question as it would be way to time consuming.

Any thoughts on a better way to reach my objective of a dynamic material cell shading solution?

You should consider using Post Process effect for cel shading.

Its not a good solution either as it is expensive and is extremely inflexible.

The only real solution here would be to change the shading model. I bet it is outside of the scope of this particular question.

That’s the best answer I have found so fare. I can recompile the engine using the toon shader model from the Unreal forums.