For a stable model category $C$ and a set $M$ of object of it I would like to construct a natural functor from $C$ to some stable 'category of functors' on $M$. I suspect that the 'natural' question to do so is to consider the composition of the following functors (yet is it "optimal"?).
Using the methods of section 4.2 of Toen-Vezzosi's http://www.math.univ-montp2.fr/~toen/essen.pdf, embed $C$ into a certain category $C^\wedge$ of functors of $C\to SSets$. This yield a full embedding of homotopy categories by Theorem 4.2.1. My questions are: where could one find a (more) complete proof of this statement; could one avoid higher universes here; are there any difficulties with obtaining a full embedding of stable homotopy categories using this method?
Next I would like to compose this with the Bousfield localization of $C^\wedge$ by those morphisms that yield weak equivalence when restricted to (elements of) $M$. Are there any references for this functor, or for its composition with the first one? Which restrictions on $C$ (and $M$) are required for its existence? Is the corresponding homotopy functor a full embedding when restricted to elements of $M$?
I would be deeply grateful for any references or hints! I would prefer to avoid higher categories and quasi-categories here (if possible).