How to go about repairing and paint the paneling around the shower?

Aristes

New member
We have an odd shower paneling around the bottom of the bathroom, and in the shower.

There are a few spots where pieces have broken off and I'd like to be able to fill this, smooth it out, and paint it. The problem is, it's a hollow hole, and goes directly into the wall itself. What's the best way to clean this up and fix it?

And what is the best paint that'll adhere to this, and also to plastered walls?
 
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