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You see, extremely generous peace offers are designed so that refusing gives a stability hit. Because the province is near/on a fort, the AI will refuse. The AI will then lose Stability for refusing. Repeat until they have -3 Stability, then fully occupy them.
If you're scared of too much aggressive expansion, take Galicia and force Spain to release discount Castile Leon. You can then diplomatically vassalize Leon.
No large country can be completely destroyed with single war.
In first war break alliances and ask for money only. This gives short peace and hopefully forces them to get loans. Next war work to reduce manpower and force rebels.
You can try to disrupt trade, but you have to be pretty masterful with the chain of trade routes and it will not completely wipe out another nation. You should mix this tactic with taking money and lowering stability, while taking near states first. I only take full states because of the state maintenance cash modifier and the ability to lower unrest.
Moscavy: big, but fairly poor. Bad trade nodes, low development. I declared against them, took 25 WS worth of ducats + war reps and they are now in 3k dept and increasing. They will never join a coalition against me. Spain on the other hand is downstream of me in trade, I am too far away to take juicy land, and ducats + war reps doesn't do much harm to them. They have the same income as me, but less expenses.
Spain's strength is kind of in their colonial nations. Most of their income(trade + tariff) comes from them. Development wise, the Iberian peninsula is also just moderate. So IMO, in order to cripple them, I would need to make them disloyal. and declare independence. I can only see one of their CN, and I kind of don't know how to tackle this.