We have just moved into a new house and are redecorating one of the bedrooms. The finish on the walls was very poor (paint chipping/peeling off and lots of screw holes) so we started to peel it off with a paint stripping knife (see photo). Unfortunately, we have now exposed a large area of plaster which the knife has made indents into. Should we carry on and take all the paint off the walls (there seems to be several layers on there currently), sand down the plaster to smooth and prime and re-paint or can we stop where we are and prime the exposed plaster, sand to blend in and repaint the lot? Also, under the window we had a bit of damp (see photo). Is it best to scrape this area back to the plaster and prime and repaint? We are new to all of this so any advice would be greatly appreciated.