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Expanding Featured Content by Category

The home page of my site (https://holosuitemedia.com/) is displaying the Featured Content (Customising > Theme Options > Featured Content) using the Type of "Category". This works well, but I want to expand it. Firstly, I want to only display the most recent post in each category. Secondly, I want to show the category (like you have the "Posted on" date). Can anyone suggest the best way to do this, and where these changes should be made? Thanks in advanced, Steve
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