Question: repairing exterior stucco walls from the inside?

Hello all, thanks to Stick for pointing me to the forum. I've already gleaned som great info from the helpful folks here. I started demo today on a detached garage conversion. The bottom 3 feet of the exterior walls are underground on 2 sides, and there are some cracks and holes in that portion of the wall. I know the right way to fix this would be to dig down and repair from the outside, but for several reasons that's not feasible (it would involve ripping out a finished deck). Any suggestions for how I can go about repairing these from the inside, then making them watertight? The next step is beefing them up to be the outer leaf for a room-in-room build, but I don't want to start sticking MDF in there until I know for sure that the walls are water tight. Any help is greatly appreciated.

Hey Mike, Bubble gum in the holes. You might want to just start a "My Studio will be more awesome than Stick's" thread where you chronicle the whole process. I think you get a little more feedback on the individual steps and problems in a thread like that.

My plan is to build it twice as nice as yours, then sell you my house.