>>1418362dunno what it would be called. reconstruction? I did a lot of this crap when I was editor for some scanlation groups, endless redraws!
Im lazy I just expand the canvas after making the image a layer (PS only, most other apps I use natively work as transparent layers) Do work then upscale in the method you prefer. I tend to do it in steps with cleanup passes between to avoid the jaggies on high contrast crap, like overly sharp lines.
When I am doing the edits I will do them on a separate layer and only when I am near done will I tend to work into the original image to blend my edit to the original.