My garage is block, about half in the ground, the portion below grade is 2" inches Dow pink foam, above ground is 4" white styrofoam covered in Dryvit. Dryvit is sort of like stucco. Expensive approach but I didnt have many options
It depends on the exact construction of the garage.
If the blocks are hollow and the voids are clear then you could fill the voids with insulation.
You could dry line it and insulate (i.e. frame the inside and insulate between the studs)
Here in the UK we quite often insulate old, solid masonry houses on the outside by applying an insulating render. If you insulate on the outside then the masonry (blocks) will act as thermal mass.
As usual there is always more than one way to achieve the desired outcome.
Pate, the InsoFast method looks interesting. It looks like it will stay dry between the concrete blocks and the insulation panels, as long as there are no leaks in the walls.
Flange, I'm not familiar with the insulating render you mention. Is that a material that gets troweled on, like stucco? You're correct about multiple ways to do this. I appreciate your suggestions.
Just checked out the Dryvit product that Kuhner recommended. That also looks very interesting. That supports kbs2244's suggestion of remodeling/restyling the exterior of the garage. Hmmm...like maybe a vintage gas station, perhaps? I'm glad I posted this. You guys are coming up with some GREAT ideas!
Pay the most attention to the ceiling as that is where the most heat loss will occur. Also make sure all cracks are sealed. Infiltration will kill you. Third, make sure the insulation envelope is as continuous as possible. And last, insulate the block wall both inside and outside with rigid foam insulation panels with the highest R value available. Use a glue on method to make them continuous and tape the joints. Apply siding of your choice and interior finish you desire.