I'm trying to create custom appearance for PopupMenu with the below code. The problem I have is with the menu items which are displayed as values instead of labels.

How to create appearance of PopupMenu which looks like the screenshot below, but works the same way as PopupMenu with default appearance, and has the same properties such that it is highlighted in blue when the mouse is hovered over it?

PopupMenu[
 Dynamic[popupSelection], {val1 -> "L1", val2 -> "L2", val3 -> "L3"}, popupSelection, 
 Row[{Dynamic[popupSelection], Spacer[3], Style["\[DownPointer]", 20]}]]