Here is another option. When I built my contender, it had a "cowl" similar to what you have there--all balsa built up under and beside the engine. Instead of wrestling with covering, I just bought the monocote paint that matched the covering I was using. Painted it, then covered the fuse sides up to the painted cowl. Worked wonderful, and you can't tell any difference at all. Put several coats of paint on to get it thick, and then iron the covering "into" the paint, and it will never peel back. Blends perfect. I believe ultracote has a set of paints to match their coverings as well. (I hope so, as I've recently switched to ultracote and love it!). One thing I didn't do that you will want to is apply a paint sealer of some sort before painting, or the wood grain will show through the paint.

Good luck