Find closest multiple of $23$ to $81$. We see that $3 \times 23 = 69$ is the nearest. Now subtract $69$ from $81$ to get reminder $12$. Add $3$ to quotient.
Find closest multiple of $23$ to $125$. We see that $5 \times 23 = 115$ is the nearest. Now subtract $115$ from $125$ to get reminder $10$. Add $5$ to quotient.
Since $10$ is less than $23$, stop the division. The reminder is $10$. The topmost line $035$ is the quotient. Remove all zeros at the start of the quotient to get the actual quotient $35$.