You apply the patch to the sourcecode, either via
git-am or manually via
patch. For compiling I can just refer you to the
VLC Wiki. You probably want to build the entire project then, and not just the CDDA plugin (to be on the safe side).
One reason why I don't use Windows. It's always extremely difficult to build your own software there, let alone setup a working compiler toolchain... Anyway, good luck.