arXiv:2610.30860v1 Announce Type: cross Abstract: Nepali-English code-switched conversational speech presents severe challenges for automatic speech recognition (ASR), chiefly through script confusion (inappropriate mixing of Devanagari and Latin orthography) and elevated error rates at language switch points. Supervised fine-tuning (SFT) can adapt multilingual foundation models, but human code-switched audio is expensive to collect and annotate. We curate a new benchmark of 13,044 spontaneous podcast utterances (15.45 h total; 10,214 test, 2,830 dev), audited and verified to eliminate machine translation leakages and acoustic loops. We investigate a two-stage synthetic-to-real adaptation framework: Stage 1 applies SFT on 0.95 h of speech synthesized via a multi-speaker, dual-engine TTS pipeline; Stage 2 explores Group Relative Policy Optimization (GRPO) with transcription and script rewards. We find that synthetic SFT provides the primary cross-domain transfer to spontaneous human speech, reducing Mixed Error Rate (MER) from 23.40% to 21.52% (-1.88 pp) and switch-point error rate (SPER) from 35.89% to 28.77% (-7.12 pp). Subsequent GRPO yields small, statistically significant adjustments on 173 test utterances (1.69%), driving English script confusion (SCR_en) from 6.45% to 6.36% (p <= 0.001) and SPER to 28.70% (p = 0.022 clustered). Crucially, ablation reveals that in this SFT-converged encoder-decoder setting, an auxiliary script reward term yields performance identical to MER-only optimization because rollout candidate groups exhibit near-zero script variance on synthetic data. On monolingual benchmarks, SFT improves Nepali MER by 2.71 pp (stabilizing at 18.42% after GRPO, a 2.38 pp gain over baseline) while preserving English lexical WER (3.38% vs. 3.33%). Verified transcripts, timestamps, episode metadata, and reconstruction scripts are publicly released.