insulation for concrete basement wall and ceiling

I’m redoing a small reception room that is 50% below grade (it’s on a slope outside).

The current insulation was 1 inch Styrofoam but I’m not sure this was enough as the room was always a bit damp and cold.

We were thinking of adding 2 inch Styrofoam but the room is only 50 sq ft of floor space so every inch counts for a bit of extra room.

The walls will have framing/strapping and then paneling on top.

Is there any high density durofoam or something similar that could be put it in to be only 1 to 1.5 inches thick with good insulation?

Don’t want it to be too expensive so can’t use foam injection or other methods.

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