External DAC connection for Bluesound Node 2i (after "Another streaming newbie" thread)


Guys, just following recent topic raised by chuckccs, I found myself in similar situation because I was comparing Bluesound Node 2i sound via its analogue RCA output with its sound via external DAC (M2Tech Young DSD with external power supply). Difference was really marginal, especially taking into account additional cost of external gear (DAC, cable, PS). I connected Node to DAC via coaxial output, however not tried the optical connection. 
From those who got substantially better sound from Node 2i via external DAC I would like to ask which connection they used (coaxial or optical) and which cable they recommend, maybe also which DAC they used too. Thank you!
apanhc
Good suggestions, Eric. Would you say the MDHT Orchid is a significant upgrade in SQ over the DAC built into the Node 2i? How does it sound better/different?

Same question for the Topping and Schitt DACs in my budget? Will they sound significantly better (ie bigger soundstage, more layered, more transparent, etc.), or will they just sound different?
Yes, I the Orchid is smoother, more of an analog sound compared to the built in DAC. That is not to say the highs are rolled off, they are not. I have not heard the Topping or Schiit DACs, but there are several mentions earlier in this thread. 
I'm using the Node 2i with a Schiit Gungnir Multibit DAC, Yamaha AS100 and Totem Hawks and it sounds great. I'm highly impressed with the stock DAC in the Node 2i. In my system it sounds beautiful on it's own.