Easiest way is to copy the game files / iso image to another hdd image, and mount it as drive D:
You can use a tool like UltraISO to access the hdd files.
Here’s how I do it:
– on your PC, copy the iso file, e.g. Diablo, to an empty 2 GB hdd image
– copy this hdd image to your phone
– mount it as drive D: in Magic Dosbox
– in Win95, use a CD-ROM emulator (e.g. Virtual Clone Drive) to emulate a CD drive
– mount the iso file from drive D:
– install the game to drive D:
– play

With this method, you can mount different hdd image files for different game profiles. Your C: drive will only store the installation information, while all the game files will be stored on (interchangeable) D: drives. This way, I’ve got 10 Win95 games installed atm, keeping them on six 2 GB images that are being mounted by the according game profile.