Great question — answering as the UphillTech team:
This cabinet isn't an ideal choice for recessed installation. Typically such a cabinet has a flange or a face frame that overlay the wall slightly, eliminating the need to finish the edge of the drywall in the first place. In this case, since it would be impractical to install drywall around the entire opening, I would probably install corner bead on sll edges and skim to finish the first inch of the opening. It's still not an ideal solution since an imperfect fit leaves gaps around your cabinet. You may have to install the cabinet, mask it with tape, and then fill the gaps before painting the wall. You could also install cabinet now, temporarily, and fit the corner bead right to it.
Full answer by isherwood: https://diy.stackexchange.com/a/330230 (CC BY-SA 4.0).
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