Nice! I did something very similar in our basement a couple years ago--I discovered that the original builder had not sealed up any of the penetrations in our look-out basement, and there was lots of dirt/mildew on the fiberglass batts. I cut 2" XPS foam to fit each stud bay with a 1/4"-1/2" gap around all four sides, glued in the XPS, then used spray foam around all the edges to get a nice tight seal. It was a fair bit of work, but I also took that opportunity to seal up all the holes in the wall (spigots, electrical service, outlet boxes, poorly-sealed sill plate, etc). The exterior walls are 2x6 framing, so I filled in the remainder of the stud bays with regular R-13 kraft-faced batts purchased at a yard sale. The basement was a whole lot warmer the following winter :)