Shower walls not recess. Best way to finish it so it looks good

Bump the framing studs over until they are tight to the shower sides then secure through the fiberglass shower flange into the framing studs with 1 1/4" drywall screws to set in place.

I have a Video that shows you how to finish a shower in the basement in my basement finishing store located at
The Basement training Store (http://www.basementfinishingvideos.com)