A comprehensive simulation study is presented, examining the interaction of an EUV capillary discharge laser, operating at 46.9nm, within carbon at solid density. By incorporating a detailed model of photoionization, equation of state calculations, electronic term accounting and refractive index calculation into a pre-existing 2D radiative-hydrodynamic code POLLUX, target ablation and subsequent plasma expansion has been simulated for target material under intense (1011 W cm-2) EUV irradiation. Unique ablation based on direct photoionization by EUV photons creates solid density plasma with a temperature below 20eV. Plasma in this warm dense matter state is of particular interest to inertial confinement fusion research. A reduction in focal spot size, due to a decrease in the diffraction limit, combined with increased target penetration allows for high-aspect ratio hole drilling and a significant increase in the ejected target mass. This work outlines a comprehensive computational environment used to simulate the EUV/x-ray laser interaction within solid material and expanding plasma.