I have loved these walls for over 10 years now, since they started popping up in interior magazines. Better late then never, I thought, and decided to "invent a bicycle" since there is not a single tutorial on the Internet on how to achieve the same results. Unless I order fake paneling from Europe.
We got a sheet of Drywall. Cut it to the blocks according to our design. Then measured the holes and used a circular drill bit to pre-cut the holes. Then we glued and screwed the pieces of drywall on the wall.
I used Gray Concrete Patch (It doesn't shrink!) and spackled the whole wall. The holes needed to be done twice since it cracked overnight. Basically, a good steady hand is needed for applying the top coat. Especially on the corners. For the ridges we used a grooving tool.
Also this vintage walnut linen cabinet got a new face - this is "Before" I stripped it down and applied Danish Oil