I'll help you out with a few things.
Basically the best way to lift the KK is a full spring lift. It'll ride and handle better, and last longer. Old Man Emu(OME) 927 front springs and 731 rear springs will get you 2.5" of lift from new stock height. Ironman will get a little lower, they come in at about 2.25". You'll need to find different springs for Ironman though because they don't make a KK kit, we just use KJ front springs(they use the same springs). After that, buy some shocks. Stick to quality shocks like Bilstein(most affordable), OME and Ironman.
Now you have your new springs/shocks you need bumpstops. Fronts can be bought on Jeepin' by Al, rears are hockey pucks.
Now it's time to think about how high you want to go. You can add to both these lifts to get up to potentially 3.5" of lift(what I run). If you're shooting for 3" just buy the 1/4" top plate and install that when you do your lift. I use OME as my examples since they have matching springs. If you want more down the road, you can add in a clevis lift. For that you go buy 6 conduit nuts from lowes(2" to be exact), and install 3 per side. That's a 3/8" clevis lift, which will get you the rest of the way up to 3.5"(everything doubles in front).
HOWEVER, 3" is the limit for stock a-arms. After that you NEED to get upper control arms. JBA is the best. But just a heads up that you need to factor that in for a 3.5" lift. I recommend this order as a clevis is easier to install. You unbolt the clevis slide the rings on and bolt it back up, then go get an alignment. To install the top plate you have to drop the spring assembly, which is much more involved.
Now the rear. If you want 3"(with OME springs again) go buy 2 extra rear upper spring isolators. You will put 1 extra per side. This means stock lower, stock upper and 1 additional upper. If you go to 3.5" buy 4 extra and just do 2 additional per side(stock lower, stock upper, 2 additional uppers). This will get the rear up and give a level stance.
Now time for tires. Luckily you're not going high enough for 32s, so no need to regear yet. 2.5" will fit
245/75-16 or
265/70-16. Both are just shy of 31" tall, the 245s are about 9.8" wide and the 265 are 10.5". You're in Canada, I'm assuming you know what 245mm and 265mm should look like. Like I said, both will fit no problems. If there are problems, they are easy fixes. I personally like wide, and would go 265s(I would have if they had duratracs in that size when I was shopping for tires). When the time comes we can help give more advice on tires.
Now time for rims. Since we are talking about 16" sizes, you'll need new wheels. If you go with 245s stick to a 16x7 with 4" of backspacing. It'll fit fine and put the wheel out level with the fender. If you go 265s, the same rim will work fine, BUT you can safely go with an 8" wide wheel(well less worries than with a 245...). So basically a 16x8 with 4.5-5" of backspacing should do. With all that said, if you like your 18s, then look into tires that are similar sizes to the 16" variants and go from there. Who knows, you might get lucky. Again, when the time comes, ask and we will help.
For more info on lifts check this out:
viewtopic.php?f=88&t=79401And since you asked about lights...this is where I put my switch:

That's my wall of text for now. Let me know if you have questions...