Greetings,
I am about to reside a 24' x 36' Lake Tahoe  1.5 story 2x4 framed cabin. East and west walls are 9', north and south walls have 20' gables.
The cabin is at 7800 feet.
The existing original siding is 4x9 rdwd paneling with vertical battens on 16" centers directly over the 2x4 framing was placed in 1970.
There are 7 single pane aluminum framed sliding windows (replacing with Milgard Tuscanny)
4 single pane 5'x5' right triangle wood framed windows  (replacing with dual pane milgard)
2 standard 6'8"x6' single pane sliding glass doors (replacing with Milgard Tuscanny)

My plan is to remove the existing siding.
Place new fiberglass batten insulation in the stud cavities.
Place new 1/2" OSB sheating.
Wrap with Tyvec
Tape joints
Place 2 layers of 2" rigid foam Thermasheath
Tape joints
Place 2"x 1/2inch vertical battens and 8" x 1/2 vertical plywood corners for securing siding.
Cover with James Hardie Plank

I'm getting conflicting suggestions as to how to compensate for the thickness of the foam as it relates to the windows and doors.
One suggestion is to install the windows on top of the Tyvec/OSB and fur out the trim using 4 inches of stacked 3" wide plywood.
A second isto fur out the frames 4" and install the windows at the level of the foam.
The doors to be installed in the framing, with furring placed to extend to the thickness of the foam.

Please tell me the best way to do this.

Thank you!

Come on.....
Somebody must have an opinion on this.
Let's hear it.

Cheers!!

what are your goals?
Fiberglass is crummy insulation; dense packed cellulose is a much better choice, or if you want to do it yourself, use Roxul batts. (may take some searching in your area).
If you are interested in saving energy, which you apparently are, you need to read up on and spend time airsealing the walls. Air leakage is responsible for up to half of your heat loss.
You can either leave the windows there and install an exterior extension jamb, or reset them on the outside of the exterior insulation. You'd be smart to replace them with new double or triple glazed windows when you are doing the other work.

Thank you for your reply.
Yes, I plan to seal all OSB and window framing with Tyvec Drain Wrap and Tyvec Flex Wrap.
All foam board seams will be staggard and sealed with tape as well.
The structure will be weatherproof at that point.
Yes, I plan to replace all glass windows and doors with energy efficient Milgard Tuscany products, as noted above.
Thank you for the Roxul recommendation. I'll check that out.
Let's stipulate that the structure at the exterior level of the foam board is weather tight and new energy efficient windows and doors are being installed.
My question is, What is the best way to fur out the window frames to compensate for the 1/2" OSB, the 4" of Rigid Foam Board, the 1/2" vertical air gap battens and 5/16 Hardie Plank (~5.5"), 3/8" plywood boxes and use box windows, 2"stacked plywood or solid wood around the frames and use finned windows.
I'm guessing doors should be installed against solid wood frames and not plywood boxes.

Cheers!!