Just did up this cabinet enclosure with my neighbour... We put in a fake rockwall, with some downlights for heating... We sanded it back to bare timber then stained it Jarrah then put on a top coat... This is the second one we have done... Here are pictures of both...
Great job on the interior! The dark really works with the lighter wood (2nd last photo).
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Basically you use expanding foam onto the cabinet back piece, wait for it to set, carve the expanding foam into the shapes you want, then render the enclosure adding oxide to the render to get the colour you want...