That's great you have a nice neutral shade to start with. Remove the white "bar". It is a dated continental curtain rod, popular in the 90's early 2000's. A flat board mounted valance that goes up to the ceiling would be great. A patterned fabric in your style/color scheme would be nice. Moving it up to the ceiling will give you height and get rid of that awkward space between the top of the molding and the ceiling. If you can, please post a photo of the window straight on and I'll draw it out for you. What other colors are in the room? Are there any other windows?

window designs gives good advice; i'd just caution you that anything that goes to the ceiling is going to pick up heat from the can light. understand the depth of what you are choosing before you smoosh it behind the light.

Thank you so much Marie, I really appreciate your advice. I attached additional photos for you as requested. The space between the wall and light is 6 1/2 inches, right now the white bar is just behind the light. Other colours in the kitchen, adjacent living room are grey, black, white and brown, neutral colours. I have pops of colour in pillows and flowers with the season, yellow and deep burgundy. You will see my sliding door to the deck in the photo. I receive morning sun in this space. Thank you again, if you can draw out what you think will work that would be helpful!