I am confused with present continous tense in reported speech do we need backshifting or not ? and if we do backshifting should we backshift the second part of the sentences? ( "when" part )
He said ‘I was having breakfast when you phoned me.’
1- He said that he was having breakfast when I phoned him.
2- He said that he had been having breakfast when I phoned him.
3- He said that he had been having breakfast when I had phoned him.
Which sentences should I use in reported speech ?