Control the humidity

• Put the bath fans on a timer
• Reduce the humidity in the home in accordance with temperature
• Direct more HVAC heat into that area (i.e. open all vents)

Control the surface temperature

• Run the heat higher
• Open the blinds so the heat can get to the window

Some of the things you are already doing, obviously, but just keep doing that, If that is a metal window, and it's cold out...it's gonna be tough.

I would guess the flashing wasn't installed correctly. You don't need new windows, you need these windows installed correctly. It will be all labor costs.

Flashing an opening before windows are installed involves applying self-adhering tape or metal flashing to the sill (bottom), jambs (sides), and header (top) of the rough opening to create a continuous moisture barrier. The process integrates with the house wrap (WRB) to guide water out, preventing leaks before the window is set in place. Steps for pre-window flashing:

1. Prepare Opening: Clean the rough opening, ensure it's square, and install/cut the house wrap (often a "I" or "H" cut).
2. Sill Flashing (First): Apply a wide strip of self-adhesive tape or metal sill pan flashing across the bottom, extending several inches up the sides and down the exterior face.
3. Jamb Flashing (Sides): Apply vertical strips of flashing tape up both sides, overlapping the ends of the sill flashing.
4. Header Flashing (Top): Apply a final piece of flashing tape across the top, overlapping the sides, and tucking under the upper portion of the house wrap or integrating with a drip cap.
5. Seal Corners: Ensure all corners are perfectly sealed, often using additional small pieces of tape or fluid-applied sealant for a complete waterproof membrane.

Windows on Washington hit the nail on the head, humidity issue in the house, not a window installation issue at all.

I agree. The condensation on the glass indicates that excessive indoor humidity must be dealt with. WoW has provided you with the ways to deal with the problem. Once the condensation issue is resolved, the sheetrock will most likely need to be replaced at the return, as the damage will go deeper than the paint.

Is that inside a shower though? Because it kinda sounds like it is. And if it is, the entire wall is likely rotten inside with nothing holding it together but the tile. And if it isn't in a shower, but is in a bath, the trim and possibly the framing under the peeling paint is likely also partially rotten.

You have received excellent replies to your original question, with WoW's recommendations and chart for controlling window condensation at the top of the list.

Something to remember is that there are only two ways to control condensation on windows or any other surface, 1) raise the temperature of the surface above the dew point temperature of the air, or 2) lower indoor moisture level in order to lower the dew point below the temperature of the surface that's condensating.

All of the suggestions that WoW offered are geared to one or both of those two goals: higher surface temperature or lower moisture level. There are no magic bullets, you need to do one or the other to control the condensation.

Raising your indoor air temperature will lower the relative humidity of the air in your home but it will not affect the dew point temperature which is entirely dependent on the amount of water vapor in your air and is not affected by temperature changes. While lowering the level of water vapor in your air will lower the Rh, it will also lower the dew point temperature making condensation less likely to occur.