Second photo

From your photos, it looks like there is space for what you want since all you need for reading is a comfy chair and ottoman, plus a small side table and floor lamp. For the crafting/office space, you need a desk/work table, plus good lighting. You have lots of storage in your built-ins for supplies and files. We can give you more precise ideas if you will supply us with a rough sketch of the area with dimensions marked.
Carolyn Albert-Kincl, ASID

Hi there! I think this is a fantastic space & you should have plenty of room to do what you want. In the first image, I would use that side of the room for a comfortable reading chair/chaise and a small round table. (reading lamp ontop) Then, use the other side of the room for crafting since that is where your natural light is.

I'd be tempted to paint the room a rich colour like royal blue or teal to really make the bookcases stand out. I'd also be tempted to make the window end the 'craft end' of the room. You don't give dimensions but if space allows you could divide the area with something like an Ikea Expedit unit - the 8-section one, laid on it's side. You could have baskets in some of the holes but not all to allow the light to shine through. I think I'd go for simple sheer curtains, floor length but not trailing.

Not sure what the yellowish things are on the cabinet doors (power points maybe?) but I'd get rid of them, or change them for white or brushed nickel. I'd switch the hardware to brushed nickel too, and change the fan. For the reading area, I'd go for a compact fabric sofa in a single colour (if the walls were blue, for example, I'd go for light grey, red or possibly chartreuse green), and place it at an angle across the corner facing towards the bookcases, and have a small side table in a bold colour (not white) that contrasts with the sofa. I'd then pick up that colour with some cushions/pillows and a nice throw.

It looks like a great room you have there!

I think you can definately make this space work for you...I would change the carpet to a hardwood floor first, Install a Murphy Desk in the bookshelves that you can pull up and down as needed and put a couple small chairs in front of the window. You should also invest in some shades that you can put at the window to control the lighting so it doesn't blind you. Look at the Hunter Douglas Silhouettes! I would also add a cute valance above the windows that can soften the lines and you can establish some color as well as give the room some "comfort features" . Good Luck!

Thank you all for the input! This is by far my most favorite room in the house and I can't wait to get to work on it! The children have a playroom, the husband has his workshop, so this is gonna be MY room! Would a wood desk and side table work in this space since there is already so much white?

You can use wood furniture with the white. Depending on what kind of desk, you might float it in the center to divide the two use areas of the space. It could serve as a study table for someone using the resources of the "library" and as a surface for crafting. Be sure to have handy a protective cover for it if crafting. You can get those covers that have markings to use for cutting patterns. Check craft and fabric stores. The side table and a lamp could be used instead of a floor lamp. I was just thinking in terms of saving floor space, but if you have it to space, a table where you could lay the book you're reading would be nice.