Congrats on the old Mustang. Reminds me of my old 89 5.0 LX (sadly I don't have this car anymore).
With that said, as I browse the adverts looking for old Fox Body's, the many I find are all cut-up, with huge air-damn hoods, and big drag racing tires, and roll cages, etc... Very few are sleek, stock cruising machines. Thus my opinion, since this is an awesome find you've stumbled upon, is to keep it stock. If you replace something (i.e. wheels, keep the stock ones...) That's just my personal preference. Like I said, when I do my searches, and see them turned into dragsters, or poor attempts to make them look like dragsters, I start thinking of $$$$ to make it back to stock. Given the age of the motor and looking fairly original, I wouldn't do turbo's, superchargers, or NOS. The strain would be to far great without having to make serious modifications to engine, body, suspension and transmission. There are plenty of S197's out there that can be modded. Ok, enough with my opinion...
Now, onto the vehicle... Great find!!! I'm envious. Secondly, you have single stage paint. No worries, SS paint is probably the most rewarding to restore... Mainly because you can restore it... Unlike clear-coat paint, once the cc is gone, there isn't much you can do, except repaint. But Single Stage will oxidize, look dull, but with hard-work, patients and determination, you can make it pop again.
Read Mike's article on how to restore single stage paint:
https://www.autogeekonline.net/forum/2009-to-2017-how-to-articles-by-mike-phillips/25304-secret-removing-oxidation-restoring-show-car-finish-antique-single-stage-paints.html
Lastly, if this isn't a daily driver (hoping it isn't...), will allow you take your time and tackle one small section at a time. Don't feel rushed, and don't try to do everything in one weekend...
Sounds like an awesome project! Wish I was closer, I'd help out! Please take good before & after photos! Good luck!