I would go with bamboo blinds.

Celerygirl-you really have a flair for this stuff.:) Seriously, it's like a great solution that I had no clue about. Not sure what original poster will think but I think that's a great idea.

I think shutters would suit the space

Hey There: I love the trim and casing around your windows and doors - so you have to go with an inside mount for sure. Here is the thing though: If you go with roller shades, you will have a gap of about 3/4 inch on each side which is required for them to operate properly - so you cannot black out the room. You can do roman shades but this will take away about 1/3 of the height of your window and block the view- though they have only a minimal gap on the side.

And you can go with honeycomb bottom up and top down blinds...versatile in light management and privacy...available in hundreds of colors to go with your design.

Honeycomb Shades from Fenstermann LLC · More Info

Bamboo Blinds and a white comforter