Engine has WAY too many limitations. No possibility for liquids/stabbing/etc.
You should make MaD 3. This game isn't enjoyable with the only thing you can do is just swing a sword around and watch the doll get a cut that doesnt look realistic. +
MaD3 would very likely be built on the same engine, were it ever to exist. Both of those things are very complicated to make properly physics-wise, on any engine. Faking them with animations in some implementations is plenty doable, but making them with actual physics is not simple at all.
PLEASE. add an option to keep Particles (not necessarily blood) and tiny cut objects. its annoying when they dissapear. that would make this really better, for 'roleplay' things such as cooking. Great game. it evolved a lot.
You can disable [Settings - Physics - Destroy Shrapnel] to make small cut pieces remain. Particles are always temporary and can't collide with items so you can't store them.
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MaD3 would very likely be built on the same engine, were it ever to exist. Both of those things are very complicated to make properly physics-wise, on any engine. Faking them with animations in some implementations is plenty doable, but making them with actual physics is not simple at all.