On Monday, February 24, 2014 10:07:47 PM UTC-6, wrote:
If you build a small model, you will find that the siding is too short by the thickness of the siding on the adjacent corner. Unless you have corner molding that is wide enough to hide the increased wall thickness, you will have a problem with what you are proposing. If you could put rigid 1" foam insulation on the inside walls and then cover that with new sheetrock, you would lose about 2 inches total in length and width of the interior of the house without having to do all the work of removing and then residing.

Is there a way to purchase a wider corner jam to hide the difference? Maybe it is not worth it. It was an idea to do on a small north sided wall where I have to replace a window anyway. Maybe it is not worth fooling with.

I would purchase new siding to make up the difference, but there is no way I could find siding that matches since the siding is tan and was put on in 1998.