Hi Glennf,
thanks for using MH Magazine lite.
Moving the featured image automatically to the middle of the post isn’t possible out of the box. However, what you could do of course is create a custom child theme and then copy the file content-single.php to your child theme and delete this line of code in that file:
mh_magazine_lite_featured_image();
That will remove the featured image on posts, while still using the featured image for the thumbnails on archives and widgets. After you’ve done that, you can simply embed images into your post content manually through the WordPress editor as you like.
As an alternative (in case you don’t want to touch code), the premium version of MH Magazine includes an option to disable the featured image on posts (like shown here), as well as several other additional features, options and custom widgets to customize your website.