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Have heard of people doing it and have seen pics of it done. Would do it myself when I need to remove exh. system.
Check to see if your heat shields under the car are in place.
I've wrapped from the header back to the centre muffler - the heat drop was minimal inside the car but I was trying to fix a problem with the lower steering universal joint overheating. My car has no insulation in the cabin.
I think the better solution for cabin heat would be more insulation between the exhaust and the centre tunnel / or more insulation under the carpet.