Can you share a photo of your current motor mount? Maybe you can replace the mount with one that allows you to tilt the motor out of the water.
The motor mount on my old Catalina 25 was shimmed with some 2" stainless stock to push it farther from the transom of the boat. That allowed the engine to pivot farther and got the prop well out of the water.
It's the left-most boat in this photo (that's from a race last week):
You can see the square tubes that shim it in this photo:
Lutra April 2012 - AlexAndChristine
Folk boats are pretty chunky, I wouldn't go below 6hp with a high thrust prop.