Import the high-resolution model, the low-resolution model, and the cage.Create an inflated copy of the low-resolution model, which encompasses the high-resolution model.Elements can be tagged by some baking tools, so specific low-poly elements will only bake related high-poly elements, this avoids exploding (3ds Max can use Material IDs, etc.). Tools are also available, see Explode script needed (for baking purposes).
The workflow: If the modeling software has animation, you can keyframe the explode to easily reverse it after baking.After the bake, move the pieces back together. Use the same separation for the highpoly model and the lowpoly model. To explode means to separate the non-welded surfaces, mesh elements, Zbrush subtools, etc.Marmoset Toolbag's baking tool avoids the need for exploding the meshes.The reason: Interpenetrating or close-together parts can cause baking artifacts, because neighboring surfaces will capture parts of each other, see Texture Baking#Solving Intersections.
Use just enough subdivisions to get a smooth surface at the baking resolution, and no more.
Test with all the required functionality so you can determine how much detail is required.Create a rough low- to medium-resolution model, and get it into the game.The baking workflow varies for each artist this is a summary of common baking tasks.