The window appears to be recessed enough to have an inside mount. That would be the option as the frame butts up against the cabinets.... Fortunately, it appears to be plenty of space for an inside mount.

You can pull it up as far as you light..... for decorative purposes you can lower it a bit later in the day and in the AM pull it up a bit higher.

Vicki, I think a roman shade would look very nice! You could install it inside or you could hang it just below the crown molding on the cabinets. Depending on how much fabric you have and how much you want to spend, you could also make a mock roman shade that doesn't function. On this job I have mock roman shades inside the window in one area and then on the outside due to window depth limitations on another area.

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While I like the look of Roman shades I would not want one above my sink area. I always use a curtain that is easily washable. Your window is lovely.