Small room, solid wall, insulation plasterboard?

13 Jan 2016
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United Kingdom

Small bedroom is about to be plastered. One of the walls is external and am thinking now is the perfect time to insulate this in some way.
Can anyone recommend the best way to balance insulating vs loss of space?

Battens and insulation plasterboard? Good thickness? Brand?
Stud wall and insulation?

I've seen Kingspan K118 promoted but it's very expensive. Is Knauf XPS Laminate 27mm/55mm that effective?

I also understand it's important to create some sort of cavity. It's pebble-dash on that wall - not sure of its integrity though.
Would love to foam fix a load of insulated plasterboard to the wall and hope for the best but not sure if that's just naive.

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