Lime mortar foundation crumble

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Moose123

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House was built in approx 1935.
Just went to replace the rotting, ant filled, wood frame around a new (2018) vinyl basement window that the old owners for some reason didn't do at the time of the new windows... The exterior of the foundation below the window (below grade, adjacent to asphalt driveway) was crumble back quite easily - shop vac was pulling it away. There was a mortar/parged window sill that I pulled off so I could dig down a bit without removing any driveway. The crumbling got better but I would wager about 2 inches of surface foundation was loose and easily vacuumed up. For the time being I formed and poured a new concrete sill that extended down about 8" or however much I dug down between the driveway and the wall.

On the inside, the basement wall was framed and drywalled, and I wanted to ensure no ant colony in the wall, and see what the interior foundation wall looked like, so i pull the drywall and insulation. The foundation had a thinset cement product on it which sounded hallow is some areas (solid in others), so i broke away at it and sure enough where it was hollow sounding the foundation had spalled away leaving sand. I can scrape the concrete wall and get more sand and aggregate to break away, but for the most part the interior wall is solid - and is solid on all other walls throughout the basement.

Foundation walls are 12" thick

For an interior fix I was told a limewash, is that correct/best? Where do I buy it and is it a premixed liquid like paint, or is in powder form and I mix it?

For an exterior fix where I am seeing 2" of possible foundation loss, at least directly below the window, is there anything that can stabilize and/or bind the deteriorated concrete? I'm planning to redo the driveway next year, so if I need to expose the foundation I can at that time.
 
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