A Dana 44 front and 44 rear are good swaps. a Dana 60 hangs down low and will lose you ground clearence. So unless you are running 37's with a big motor try a dana 44.
you will need more then a 4" lift to run 35's. The Dana 35 will break and could ruin your day as you will no be able to drive it. once the axle shaft breaks the whole shaft and wheel will walk right out.
but that would still leave you with a Dana 35. The dana 35 is junk my friends and will not last running 35's.DO not put money into it. Get a Ford 8.8 or Dana 44.
1 you will need lower gears
2 Your Dana 35 can't handle 35's
3 People don't put 35's on your Jeep cause it's cool put them on only if you got the right axles to run them!