Cycling shorts of course. Skirt over shorts are an idea, but I really like showing off my thighs (I'm with you KimmyT) and I hate the idea of the skirt over the shorts getting caught in my saddle as I stand up or move around. Useless for me. Can work for you.

Some of them are made shorter, PI Sugar come to mind, but if you search around this forum you'll find an answer to that (personally I prefer longer shorts because they cause less chafing on my inner thighs).

You should indeed tilt your hips and sit on the back of the saddle, on your sitbone.

Women-specific saddles don't work for all women. They certainly don't work for me when they are short and bulky. I love a sleek, narrow saddle (130 mm) with a long nose and a cut-out. If yours doesn't work, find another one...

One hour on the bike is pretty serious time. Be nice to your girly parts...