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Crucial for Operation Sealion,just naval invade them and crush them.
It is getting real now. Betraying your de facto always ally can only happen if you decline them entrance into the Axis Powers always. Italy has a pretty strong army (note it will be weaker if they are at war with Britain in their colonies). Attacking over Yugoslavia or Vichy France with armor divisions to avoid mountains could be a good call. Your infantry can move over Switzerland and Austria. Cutting the north western part of Italy off supplies from Rome will give you quick advance into the peninsula itself from France. The Italian-Yugoslav border is better protected, so try to only put distraction or the least possible guards there. Note that Italy has islands off the Greek and Turkish coast, as well as Sardinia, Sicily and its colonies, South Etruria, Eritrea and Libya. It also is nearly guaranteed to either own Ethiopia or have a puppet regime there.