What I did was pretty simple.
Get an svn version of dosbox (I used daum). Load it up and use the imgmake command to make a 2 gb hd img.
You can either mount both the cd image and hard drive image and copy the win95 folder to the hard drive image… or use something like ultra iso to copy files from the cd image to the hard drive image.
Restart dosbox and mount your hard drive image then switch to it and cd to the win95 folder and run setup.
Think it’s pretty easy from there.