Expose the foundation wall. Dig away any dirt and clean the concrete with tri-sodium phosphate. You may skip this step for next construction.
Cut the foam board to size with the utility knife to cover your foundation wall, from the sill plate to the bottom of the foundation.
Apply Liquid Nails in an "S" pattern on the surface of the foundation, using the caulking gun. Press the foam board into place.
Repeat this gluing process for all the foam board. Butt each piece of board directly against the next, trimming the board if necessary to insure a tight fit.
Cover all seams and corners with foil tape to insure a tight seal.
Install an L-shaped piece of metal flashing at the top of the insulation, at the sill plate, to serve as a termite barrier.
Backfill around the foundation as necessary.