This would be cool, but if there is any heavy scripting it's very unlikely to work. Some years ago I'd tested quite a few mods with it. The last one being RTR VII, and had a hotseat campaign going with three other friends. Unfortunately "weird" things started happening about 40 turns in.

Stainless Steel seems to be the best mod for M2TW for hotseat. Most play with PvP battles auto resolved.

My friends and I got kind of cute on the older mods on RTW where we used to run it. RTR 6 was the last great one we had going. We all live local to each other and mainly PBEM, sharing the save game amongst each other. We'd do some auto resolve, but mostly posturing and we'd get some border raiding going and it would boil up into a big brouhaha.
Eventually both sides would have a full stack army sitting across from one another and it was agreed upon whenever we had some decisively major battle about to occur, rather than auto resolve we would build out both armies in the battle editor on the spot where the battle would occur and play it in LAN. We recorded losses for both sides and "dead" units would be disbanded, or put on a boat and sent out to sea to go to the after-world. Sometimes we'd have half stacks left. We used money to handle representation of retraining. Usually a negotiated sum would be gifted to the winner on the next turn. These kinds of battles happened few and far between, but it sure added some depth to the hotseat games. Good times. If hotseat actually worked in EBII that would be totally awesome.