Methodology in Midrash and Pharaoh’s Death/Tzaraas

The Torah (Shemos 2:23) tells us that Pharaoh died and the Jews cried out to Hashem from their work. Rashi cites a Midrash that says Pharaoh didn’t actually die but got Tzaraas and was trying to heal himself by washing in the blood of Jewish babies. What do we do we midrashim like this that seem to totally go against pshat? This episode provides a general methodology and applies it to this case.