Hydronic Baseboard: Best way to deal with this exposed pipe?

Thank you /r/HVAC for putting up with my (homeowner/DIY) questions the last few days. A picture is worth a 1000 words.

I want that exposed copper gone. What is the best way to deal with it? I'm a little worried that it's on an exterior wall. I have situations like this in two other places in the house but they are on interior walls so no big deal (just drywall work). Is it as simple as just putting that section in the wall like someone would for new construction work? Obviously since it is an exterior wall I would keep the copper as close to the inside drywall as possible and then insulate it.

We have 2x4 studs so I don't believe I can notch (per code) but I would be anal/OCD about measuring and drilling only 1" or 1-1/4" holes as close to the interior as possible. I believe the rule for holes is no more than 40% leaving no less than 25% on each side of hole and notching is avoid wherever possible but nothing more than 25% (which would be 7/8" and I need at least 1" to 1-1/4"). In other places (unconditioned attic) where I've been running the heating pipes through the ceiling joists (rather than keeping them exposed and not insulated running across the top of the attic floor boards), I have been using a 5' metal brake to bend aluminum flashing into a V (so it looks like /o\ over the pipe). I then put a small bead of Great Stuff foam along the top of the pipe, set the aluminum V on top of the pipe, use a staple gun to secure the aluminum to the furring strips and foam the crap out of the aluminum.

Only difference is that in the attic I'll have the insulated (foam) pipes and then 24"-30" of cellulose on top of that. On this exterior wall with 2x4 studs I'll have 1-1/2" to 1-3/4" between the edge of the copper pipe and the exterior wood sheathing. Is that foolish to put the pipe into the wall like that? Home is single story ranch on a slab (no basement) so my only other option would be running pipe up to the (unconditioned) attic, across the closets and back down through the wall into the next bedroom.

Thanks, I appreciate all the help /r/HVAC has given me!

submitted by /u/vmuser123
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