Fill a paint tray with latex wall paint, then coat a 3-inch flat paintbrush in the paint. Apply the paint over the top and bottom edges of the wall, as well as any corners that exist. This "trims" the wall to prepare it to be painted using a paint roller. Without "trimming" the wall, paint could accidentally end up on the ceiling or on other walls you do not intend on painting.
Coat a paint roller in the paint, then apply the latex paint over the entire surface of the wall in an even layer. Allow the paneled wall to dry for 12 to 18 hours.
Fill a paint tray with one part latex wall paint and one part water. Choose a different color of paint than the first paint coat that has already been applied to the wall. Stir the paint and water with a paint stick to properly combine them together.
Apply the paint mixture over the painted wall using the same methods as before. Allow the paint mixture to dry for 12 to 18 hours. As the paint dries, the watery second coat of paint will crackle on top of the painted wall.
Fill a third paint tray with clear latex varnish. Apply the varnish over the crackle-painted paneling using the same methods as the previous coats. Allow the varnish to dry for 12 to 18 hours.