Position one piece of rigid foam insulation against the wall to check if it fits. Trim if needed to fit the space.
Remove the panel from the wall and put dots of construction adhesive at the top and bottom corners of the panel. Put the glued insulation in place on the wall. Press the areas where the glue is to secure it to the wall.
Check to fit a second panel by holding it against the wall. Trim it if necessary. Apply glue to the back of this second panel at each of the corners. Position this panel so it is right next to the first panel of insulation, with their edges touching. Press the glued corners into the wall.
Tape the joint between the two panels with aluminum construction tape.
Hold a furring strip in place along the channel created when two panels are installed side by side. Drill holes with a masonry drill bit. Insert screws into the pre-drilled holes. Install a screw about every 10 to 12 inches along the height of the furring strip.
Continue adding panels, fitting them in place, cutting if needed with a utility knife and gluing them down. Tape the seam, then attach a wood furring strip at the seams between the panels, using masonry screws and pre-drilling with a masonry drill bit.