http://www.ebay.com/itm/New-Chrome-8-Rainfall-Bathroom-Shower-Faucet-Set-Bathtub-Wall-Mounted-Mixer-Tap-/200962899644?pt=US_Faucets&hash=item2eca527ebc

and they do make some attachments that will go on existing faucets. but if you gut the tile u might as well run a pipe behind the wall.

I was in a somewhat similar situation. Plaster walls that were scored to look like subway tile. Plaster was failing, so I had to have 2 walls removed (wall against sink & wall with tub/shower fixtures).

My bath restoration was ballpark $5k total. My neighbor did my tile install, for a bit cheaper than having a company come in. I got white subway at Lowes & a black hex for my floors. Greenboard on shower wall & drywall on sink wall. Some special floor board was used as subfloor. Not expensive, just made with a grid to keep pattern straight.

** Your tub, sink & toilet are wonderful!!! I'd be keeping them too!! :0)

Here are some before & afters:
(In 2 posts since we can only attach 4 pics)

I forgot, my radiator had some major issues, so I bit the bullet & found a shop in the NorthEast that sand blasted, primed & painted this one & shipped it.

I love the retro vibe of this 1950 s bathroom....I am not a plumber so not sure how you can install a shower. I am sure it is doable but it might be a little more complicated. I hope you can get someone that can really think about all the options. Now the tile issue, I believe they have kits and companies that can color these tiles, you have to research online. If you can not save them a wise choice would be white subway tile. They are timeless and will coordinate well with the sink, tub etc. White is perfect you can add color with wall paint, shower curtains and accessories. What about the floor, I could not tell but you might want to install penny tile, or marble since it looks very small the cost would be minimal. This is my new bathroom with subway tile...good luck. Make sure you click on picture to see the floor tile we went with.

As long as you're not in a huge hurry, you can look on CL & ebay for unique, special pieces to make it exactly what you want.

I'd ask around for a good plumber who might also either do, or work with someone who does the work on that shower wall. They will need to be careful not to do much damage to the plaster, or maybe even take that wall out & rebuild.

I don't suggest the rip out lightly. I tried to maintain as much of my original room as possible when I did mine.

finafine...I like that a lot! Except keep the tub the OP has!

bungalowmo, if you used greenboard on the shower wall, I hope you used some kind of waterproofing membrane before you tiled.

Inexpensively as possible is very much a relative term.
#1 You could just install inexpensive white shower surround type panels above the tile and around the window and a hand held/optional wall mount faucet to shower type fixture. As far as the color scheme goes, I really do like the turquoise or robins egg tile,(if they are in good shape) the rest of the surroundings just need freshened to bring it all up to date. Add light gray paint and a little light yellow to freshen it all up, try to find these colors in a patterned shower curtain. Buy two curtains and alter one to use over and protect the window. (I have seen this done in many homes.) I would keep accessories and rugs very neutral, grays and whites, other than the color and pattern on the shower curtain that pulls everything together. (Another color scheme turquoise with browns and tans, a little more mellow.) This should be very inexpensive, possibly you could do these quick fixes and save some money to make big changes later. (Choose the shower curtain first, then paint, rugs and any other accessories from there.)
#2 If the tiles are in bad shape and or you really hate them, then your options are much more wide open, but there is certainly a larger monetary investment.
#3 I am not sure what is on your floor, if it is white and in good condition that would be great. Just saw the floor and it definitely is not white. In the least expensive possible option, cover as much of it as possible up with a solid color rug. Again gray or brown would be a great color to mellow the turquoise.

@groveraxle.....I thought the waterproof stuff was the greenboard! My mistake. I know he used the waterproof stuff. :0)

Thank you guys! I am having a plumber put in another valve for the shower and run the pipe when I take out the tile. The total cost for the shower he said was $200 that's including labor. What a steal!

Please Please Please don't do a bath fitter over that window!

My husband and I walked away from a house that put a bath fitter over a perfectly good tub with a window! Imagine all of the mold that could grow...

Anyways needless to say we walked away from that place after we found out with the house inspection.

Just an FYI for anyone else who might do that ;)

What about wainscoting instead of tile? Obviously not up around the tub, but the rest of the walls? Is that cheaper than tiling it all?

Wainscotting could definitely work in there. And, yes, it would be cheaper than tile for sure!

When you remove the old tile, I'd try & save as much as possible & sell it. Either that or donate to Habitat for Humanity Re-Store. They love vintage stuff!

Actually love the bathroom don’t tear it out, work with it. It’s super trendy now anyway

The bathroom tile in our first home was lavender (walls and floors and shower stall) with a row of accent tile with pink and purple pansies on black tile, and plain black edge tile. If you want to make your tub a tub/shower combo, you need to tile the upper walls and ceiling over the tub, and add a shower head a shower curtain. Add a long tub/ shower mat in the tub to avoid slipping if the tub surface is slick. You may be able to add an exhaust fan which sends excess moisture outside through the wall or ceiling and roof, but it should be installed by a pro before the upper tile goes in.

This is gorgeous. Please don't ruin a beautiful historic bathroom. Why buy an old house in the first place if you don't like the gorgeous style?

So… unless the tile is in bad shape, I would keep it. The colors are great, nd if tub and sink are white, all you need is wall color (bluish white), new mirror, lighting, etc and coordinating towels. Sure beats my mauve monstrosity circa 1990!