I am very confused, I think using reduction would be a good start, but LiAl would go straight to an OH.
1) As you say*, the ketone must be protected. Protect it. Any propagating naughtiness is irrelevant to the next step.
2) Reduce the ester. Beat on it.
3) Deprotect the ketone.
*Note that you begin with an alpha-ketoester. In the old Morrison and Boyd that was a French joke. LAH would have the same problem. How the mighty have fallen.