The reason for the paint peeling off, was that the plaster surface wasn't primed properly when the first coat was applied. Your best bet is to rub down the rough edges of the paint, clean the dust off and prime the bare surface with a 50/50 mix of emulsion paint and water. If using oil based paint use a primer coat first, thinned 50/50 with white spirit or turps. This thin mix will prime the surface ready to take the next coat or two. You will still probably be able to see where the original coat came off the wall though.
Homer
March 2010