1.25" lift or longer shackles? Stock shackles are 4" center of bolt hole to center of bolt hole. If your current 1.25" lift ones are 5.25" this means you only really got .75" from what I understand. This is how people explain a shackle lift to me.
31x10.50 on 8" wide rim with 3.75 to 4.00 back space. This rim size and back spacing will allow you to run wider tires in the future should you choose too. You can also gain extra room if you swap in some TJ flares.. you end up cutting some of the metal out of the body which helps clearance a ton.
I would also say based on the pictures new spring are in your future..
CJ.XJ.CJ. TJ. TJ.ZJ. TJ.TJ. ZJ.ZJ.YJ. XJ