I did a model of my son based on the Inside LW7 book and at one point it looked really similar to your 'over-exposed' version, all I can remember is that I found the solution somewhere in the middle between too much texture and looking like a porcelain doll. I hope you have the ambient light off or virtually off.
I hate to tell you to twiddle with the knobs... but that's what I do. Good luck
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