Basement Stairs...

Hey, I got some great advice a couple months ago from here on how to frame along the stairs. Skirt board along the steps then 1/2" gap between the skirt board and wall framing for drywall clearance. I did exactly that and it turned out great. Well i finished framing and insulating that half of the basement and moved on to demoing the other half. Got all the old paneling and 2x2 framing torn out and this is what I found. The support beam is almost against the stairs :thumbdown:. There is maybe just over an 1/8" space, just enough room for the paneling I tore out. What do you guys recommend for finishing this? Any input is appreciated!!