Is there any way to change lights inside an entity in game?

[Apjjm]

Forgot to ask, does this work for HandObjects? Last time I tried I don't think I could get it to work.

You can, the entity name is player_hands (iirc - might want to check this using inspection mode and some quick turning!) and it should work in the same way. I originally did the overlay for my katamari mod by having a bunch lights i enabled/disabled (which were attached to billboards for the overlay) inside either the hands or lantern entity (it should work with both but i forget which i chose in the end).