Try roman shades.

Treat them as one wide window (each) - do fabric roman shades mounted to the ceiling & extend them a few inches below the molding...

If you treat it as one window & mount to the ceiling, won't it be difficult to operate that shade? Seems like it would be heavy and awkward to raise and lower, especially over the bed.

Very much like the peacocks.

Wood shutters usually would work better than curtains on high windows; however, with the bed's headboard in front of the window, opening and closing shutters would be a problem.

Consider wood blinds or shades. Vertical wood blinds would be an uncommon look and a practical choice since it would increase your options as to how to direct light and secure your privacy.

Match the wood finish of the bed and/or window frames.