Go directly to Edinburgh with all the troops you can spare and capture it as quickly as possible. If you kill Scotland while they're still stuck on one city you won't get any Papal warnings, and you can wrap up the rest of the isles at your own pace.
I convert every settlement on the island to a city as well, it's too irritating to have to constantly ferry troops across aboard ships. Just train what you need at Caen and keep England full of militia.
Get Bruges and Antwerp after Scotland falls, they're economic powerhouses. From there the world is your oyster.
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