Stops / Night stays:
Day 1. Abbottabad or Balakot
Day 2. Naran
Day 3. You can either travel to Gilgit for a night stay or go directly to Skardu (this will be hectic).
Road condition:
Lahore to Abbottabad: Good
Abbottabad to Babusar: Good with some rough patches due to landslides etc.
Babusar to Raikot Bridge: Bad condition
Raikot Bridge to Jaglot (KKH): Good
Jaglot to Skardu: Bad
Places to Visit:
Near Balakot: Shogran, Siri Paye
Naran: Lake Saiful mulook, Lulusar lake, Lalazar, babusar top.
Skardu: Kachura lake, Upper Kachura lake, Satpara lake, Kharphocho Fort, Katpana desert, Shigar valley, Mantokha waterfall, Khaplu
You can add Deosai to this list depending on how much time you have.
Q#1 Though I've never been to Skardu, rent of a decent room will be something between 2500-5000 depending on condition and location.
Q#2 Yes, the road is dangerous but experienced driver will have no difficulty there. Alternate route is from Astore to Skardu via Deosai, but only jeeps could cross it AFAIK.
Q#3 HiAce? Coaster will work too, but you need an experienced driver.
Q#4 This route is okay.
Q#5 Lahore to Islamabad 5-6 hours i guess. Islamabad to Balakot 3-3.5 hours. Balakot to Naran 4-5 hours. Naran to Babusar top 3-5 (not sure). Gilgit to Skardu is 9 hours. So I am guessing from Jaglot to Skardu, it will take something around 7-8 hours.
Q#6 Already answered above.
Q#7 Air travel is recommended if you can afford it. May be you can arrange one way journey via airplane.
Q#8 Don't travel after sunset. Don't make your trip hectic by adding maximum places. Stay one more day at a place you liked.
Also check out other threads where people have shared their experiences.