Hi Moy,
My wife and step-daughter are in the same position as you. In June this year, having already obtained ILR, they will have been here 3 years. We will be applying for British Citizenship for both of them, my wife through naturalisation andmy step-daughter through registration. at the same time. The outcome is the same but the forms different, as i understand it. We will then apply for British passports for both of them.

One we have done that we will be appying for dual citizenship to the Philippines Embassy, so they "retain" their philippine citizenship.

A further complication for me is that my Step-daughter wants now to have the same surname as my wife and i and we are wondering when is the best time to change that.