recent posts with thumbnail on non blog page

I want to show recent posts (last 3 posts) with thumbnail image and excerpts on non blog page. if a post does not have an image attached to it I want to show another image (default thumbnail image). If the post has an image attached to it then that image is shown in place of the default thumbnail image.

It should work on windows web server. I had to change %e to %#d in strftime() to get the date to display.

I was able to do some stuff using code I found on another site.

Currently, its showing date, post title and post content.

[Code moderated as per the Forum Rules. Please use the pastebin]

Please modify this code so that it shows recent posts (last 3 posts) with thumbnail image and excerpts on non blog page.