When choosing the race of characters, you can err on the side of possibly insulting whites more than other races because a) like all other fiction it does not change the essential story b) it could give whites a chance to know what it feel like to look at fiction from an outsiders point of view.
The drawings are not shaded. Lily’s hair is black but the drawings do not show this. To choose skin color for characters use maximum diversity. Make a palette of six colors ranging from pale to very dark and us a six sided die to find the skin tone for each character. Use thoughtfulness in your final choices.
In any versions of this story make more of the cast Black than White.
About one out of ten people should be gay/ lesbian.
Lily sees peoples inner selves literally, so if someone looks like a woman but dresses like a man, the real world equivalent could be someone born a man who feels like a woman on the inside.
If you make versions of this story do not white-ify or straight-ify this story!