Using a wire brush, remove any loose or peeling paint from the damaged area. Remove any dust or debris from the area with a lightly water-dampened rag.
Following the manufacturer's directions on the label, mix the appropriate ratio of stucco patch and water in an empty plastic 5-gallon container.
Using a rubber float, press the patching material into the damaged area. Spread no more than a ¼" thick layer into the hole. Allow it to set. Continue to apply stucco patch material in ¼" layers until it is flush with the existing surface.
Before the last coat of patching material dries, remove any excess material using a clean rubber float in a circular sweeping motion. Blend the repaired area into the existing texture. Allow the area to dry.
Remove any final dust or debris from the finished repair.