The big three are VRIK to have a body, HIGGS for proper hand interactions and PLANCK for physics. And you'll want something for magic selection. I got used to the glyph-writing system of MageVR, but there are some selection-wheel based mods that are highly praised if you want a more simple, if gamey, system.

For more I'd have to look into my modlist but these are the must-haves IIRC. Maybe there's something new too. The modding scene was fairly active last time I checked.

Unless there's been a breakthrough, it's best to stay away from melee combat, as that's more than a little jank. I went with a lightning mage and had a ton of fun. Stealth archer is of course always an option, but I couldn't be arsed to keep crouching IRL all the time