In 3 easy steps...
Order a shower screen for a La Pavoni. I used an IMS PA200IM52 made for pre-millenium La Pavoni's ordered from Stefano's Espresso Care, nice folks.
Saw off the top lip of the shower screen. A Dremel cutoff wheel or a hacksaw works well. Regardless, deburr the cut edge so it doesn't damage the portafilter gasket during installation.
Remove the old shower screen and portafilter gasket. Everything's probably a bit grimy underneath so give it a good clean. This is your sign to replace the portafilter gasket if it's become hard or has deformed from normal use. With everything cleaned, slide the gasket onto the shower screen, then push the pair onto the grouphead. I use my hands to first get everything seated and the shower screen bottomed out on the group, then install and tighten the portafilter to get the gasket fully seated.