OP's 'Answer'
So I have spend a few hours couple days going down this rabbit hole and I thought I would give my findings of going from knowing little about orbital mechanics to someone who knows a little more... Many things could be wrong so it would be great if someone who actually knows what they are talking about could correct and explain to me why I am wrong.
Ok, end of pre-amble...
So following Puffin's answer I went and read loads about this sort of transfer. From what I gathered it is the best way of moving between orbits in most cases.
As I will clarify in my original post, my end goal is getting the spacecraft from path 2 to path 3 (circularized orbit):

Conveniently, the equation for the change in speed was already there:
$$ \Delta v_2 = \sqrt\frac{\mu}{r_2} \bigg( 1- \sqrt \frac{2r_1}{r_1+r_2} \bigg) $$
to leave the elliptical orbit at $r = r_2$ to the $r_2$ circular orbit, where $r_1$ and $r_2$ are respectively the radii of the departure and arrival circular orbits; the smaller (greater) of $r_1$ and $r_2$ corresponds to the periapsis distance (apoapsis distance) of the Hohmann elliptical transfer orbit.
So I just sub in the variables I know about my spacecraft, $h$, the periapsis altitude, $H$, the apoapsis altitude and $R$ the radius of the planet:
$$ \Delta v_2 = \sqrt\frac{GM}{H+R} \bigg( 1- \sqrt \frac{2(h+R)}{h+H+2R} \bigg) $$
For my problem I want to do a kick burn to circularize my orbit. Considering I know know $\Delta v$, I thought the rocket equation would work in my case:
$$ \Delta v = v_e ln \frac{m_0}{m_f} $$
This is as far as I have got, I will edit this if/when, I have done more or realized I am being stupid.
Edit: Guess what... I was being stupid
After a light banging of the head on the desk, I realized how to actually solve this problem. Whats really cool and encouraging is that my theoretical value was the same as the model's value!
Here is how I did it:
As user:Puffin kindly mentioned in his answer above, you can use the vis-viva equation to work out the required speed for an orbit.
$$v^2 = \mu \bigg(\frac 2 r - \frac 1 a \bigg) \quad \text{vis-viva equation}$$
where $r$ is the distance between the two bodies and $a$ is the semi major axis.
So this allows me to work out the final speed I want to achieve $v_f$ (path 3 from the diagram:
$$ v_f = \sqrt{\frac{GM}{r}} $$
Then I can work out the theoretical speed of the elliptical orbit (path 2 from the diagram above) and make an equation for the change in speed:
$$\Delta v = v_f-v_i = \sqrt{GM}\Bigg( \sqrt{\frac {1} {H+R}} - \sqrt{ \frac 2 {H + R} - \frac 1 {\frac{H+h}2 + R}}\Bigg)$$
(NOTE: $H$ and $h$ are the apoapsis and periapsis altitudes, its problem specific)
The theoretical speed was 0.0055 km/s faster than the actual speed! This deviation is probably due to the drag or something... That's how I know I was on the right track.
Now all I had a value for $\Delta v$ I could simply sub it into the rocket equation assuming the Apogee kick motor has a specific impulse of 320 seconds (typical value). Keeping it general, the equation for mass of propellant required was:
$$m_{\text{propel}} = m_i - m_f = m_i - \frac {m_i}{e^{\big( \frac{\Delta v}{I_{\text{sp}}\cdot g_0}\big)}} $$
Et voila, I now have the mass of propellant, everything I wanted to achieve! Now I know you could go into a lot more detail and worry about thrust vectoring and go through all the links that uhoh posted but I am happy with this level for now.
Maybe this will help someone, maybe it wont but it might help me if I need to do this again one day...