Totally possible. It'll work best with Wayland thanks to nested compositor support, whereas on Xorg you'd need to use Xephyr which doesn't do hardware acceleration.
# Give the other user access to your Wayland socket
setfacl -m u:otheruser:rx $XDG_RUNTIME_DIR
setfacl -m u:otheruser:rwx $XDG_RUNTIME_DIR/wayland-0
# Open a session as the other user (note the trailing @, it's there to login in to the local machine)
sudo machinectl login otheruser@
# Start your DE!
WAYLAND_DISPLAY=/run/user/$(id -u yourmainuser)/wayland-0 startplasma-wayland
And tada!