It seems perfectly possible to bore out the 1108cc engine to take 1242cc pistons. As you mentioned, the 1242 has a longer stroke and a taller block, so the new capacity of your bored out 1108 will be smaller than 1242 but bigger than 1108. There is a formula for working out cylinder displacement based on piston size and crankshaft stroke, but I can't remember it!
Thing is, 1242 pistons won't be cheap, and I've heard (not sure on this) that the FIRE engines don't like being over bored. Also, it would be quite expensive to do this. Probably a lot more than buying a whole 1242 engine! I saw a Punto 75 FIRE engine (1242 MPI with the hot cam

) go on Ebay for about £100!
Can you not find a 1242 engine to swap over for the 1108? That would be the easiest and cheapest way to increase the capacity.