Do not cut anything, this will just cause it to spread.
Do not cover it with anything, this will cause it to get even worse due to the extra humidity under any type of cover.
Otherwise, what Chucky324 wrote is exactly what I would recommend too.
Treatment with sulfur will kill it and the problem will cease to exist.
There are many types of "wettable" sulfur available at any garden centre and all do the same job of killing fungus.
Definitely get onto it ASAP, the risk of it spreading, especially to any flowers, is very high.
This fungus is the famous and common, botrytis, effective control is a must!!
The question though is "why has this happened?"
Too much water, too often with low air flow = prime fungus habitat.
Work on those things to prevent further outbreaks.
Hope this helps, Organoman.