Great question — answering as the UphillTech team:
The fundamentals here are the same as just about any other outside or inside corner. Extend the framing. You don't necessarily need to remove any drywall to do this. Wrap it with new drywall. Install corner bead. Try to leave it on plane with the existing shower wall. Finish the inside corner against the long wall as you normally would, with joint compound and folded paper tape. Optionally use a meta-backed inside corner bead. Ultimately there's nothing different about this than any two typical corners.
Full answer by isherwood: https://diy.stackexchange.com/a/331407 (CC BY-SA 4.0).
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