There really isn't space to properly hang curtains without covering most of the window. If you don't like the plantation shutters, you could install Roman Blinds, from the ceiling down to block the light when you need to.

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My room is almost exactly the same and I used white wooden blinds from Lowes. They look great.

If you're looking to block the afternoon sun, we'd recommend room darkening shades. This will block a good portion of light, but they won't block all the light like blackout shades would. That way you can have the best of both worlds. You can see our entire selection here: http://www.selectblinds.com/shop-by-feature/room-darkening.html

http://www.selectblinds.com/rollershades/splendor-fabric-room-darkening-roller-shades2.html

Good luck!

Hi, I have almost the exact set up except I had the builder eliminate the half wall. I have inside mounted roman blinds (made by my mom, not me LOL) but I also have struggled with how to "finish" them. I would be interested in seeing the rest of your main floor (especially the rest of the family room and kitchen) to see if the layout is similar there too. We made a few minor changes to the kitchen island that helped us a lot.

Nicely done.

Shutters, blinds or roman shades will work well.

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