Hipshot that would be great. And NekoBaron and MrCuddles, thanks for the tips. I am currently working on my own custom doodads so the shadow corresponds to the height. Its a bit tricky getting everything right, but I hope it all works.
for a solution right now, I have changed the shadows to pure white(255, 255, 255) so they arent actually seen in-game. It is a good workaround, and wonderful if you want to get rid of shadows on purpose, but temporary. (not sure if this works on all graphics settings though). That could be a tip included in the FAQ perhaps?