How to insulate this basement wall?
Cut and fit rigid to top of stone wall, then cut and fit rigid from top of stone wall to top of block tight against both, then cut and fit rigid to top of the stone wall (horizontal).
Studs from pressure treated floor plate (on concrete) to bottom side of floor joist. Fill void (between and behind studs) with either fiberglass or cellulose insulation.
Install wall board at least 3/4" off of concrete floor.
When its all said and done there is usually more said than done
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