Fasten 1-by-3-inch furring strips along the top and bottom of the block walls. Drill 1/4-inch holes, with a masonry bit, through the furring strip and into the mortar between the blocks about every 3 feet. Place a plastic or metal insert of a lag screw in the hole in the concrete mortar. Use a screwdriver to place the lag screw through the furring strip and into the insert.
Place upright furring strips between the top and bottom strips installed in step 1. Fasten these furring strips in place every 16 inches, starting at a corner.
Cut the rigid foam insulation sheets to fit between the furring strips.
Apply a construction adhesive to the foam insulation. Form a continuous bead of adhesive on the back of the foam insulation about 3 inches from the edge. Press the insulation into place between the furring pieces.