We show how the two-layer moist-convective rotating shallow-water model (mcRSW), which proved to be a simple and robust tool for studying effects of moist convection for large-scale atmospheric motions, can be improved. The improvement is achieved by including, in addition to the water vapour, precipitable water, and the effects of vaporization, entrainment, and precipitation, rendering the model cloud-resolving. It is applied, as an illustration, to model the development of instabilities of tropical cyclone-like vortices.