Tried to Google my way to a solution but can't find anything useful, maybe I can get help here :)

I have never done any masonry or plastering before, so beginner tips are welcome.

A stone has come loose above the stove insert and the whole row there feels loose. Also, there are many cracks and the color is generally ugly.

How do I fix this most easily?

Am I right in thinking of buying fireproof mortar and applying it around the stones to secure them? Then create a smooth surface with plaster and paint?

How much of the old material do I need to knock/scrape away? What type of plaster should be used? What color?
Cracked and damaged fireplace surround with a missing stone, visible cracks, and worn-out plaster.
Fireplace insert with loose and cracked stones above it; the surface shows visible damage and peeling paint, suggesting a need for repair.
Damaged wall above a fireplace insert with loose and cracked stones, peeling white paint, and visible cracks. Repairing advice sought for masonry and painting.
Cracked and damaged fireplace surround with exposed masonry, loose stones near the insert, and visible tools next to it.
 
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