I should have added that I am considering faux Roman shades. I'm trying to think of something to put there to add some color and texture. I don't want it to look cramped but do want something a little more stylish than a valance.

will you keep these blinds up into the header all the time, and just use the new Roman shade?

I think it is too deep to add something over top of the header.

If the wood valances that look like crown molding can be removed you could put a faux roman where they are instead. You're talking about something that looks like a valance but has some folds?

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I was considering an outside mount faux Roman shade but couldn't figure out how to make the projection area look finished. Or if I could even fit them in that corner.

The wood valances on the blinds do pop off. Perhaps a box pleat valance over the blinds would work. My other decor is really traditional, I was trying to think of a less traditional-looking option.

Thanks for all your great questions, they are really helping to clarify the problem.

Just remove that white valance on the blind header and put up a faux Roman Shade. Just make sure you hang the Roman Shade so that it covers the blind header.