I would use a roman shade. That way you could let in the natural light and then provide privacy at night. Do an inside mount to let the beautiful trim show.

A light filtering cellular shade?

I will try to include a pic...new at this! :-) This is an awkward window! We just painted, so I have a blank slate as far as decorating. The paint is Behr Iced Apricot. It is very neutral in person.....

Here is a link that might be useful: master bath window

How about applying a window film? That's what I did with my first level bathroom, and we're loving it. All the light still filters through, but you can't see through the film, except blurred images, so it's totally private. I have interior shutters on this window, also, but this is my choice because the window is right over my large jacuzzi tub.

Have you ever seen top-down shades?
You know how normal shades are raised, revealing the bottom of the window first? Top-down shades work exactly the opposite, revealing open space at the top and covering the bottom of the windows.

If you have the clearance, I think you might consider Georgian shutters...they are the ones with the little louvers, and require much less space than the plantation styles. You can order them to match your trim, and if you use two pairs, one up and one down, you can keep the bottom ones closed and the top ones open for the light.
If that seems too complicated, or turns out to be a bit spendy, wood blinds with colored tapes would also look very nice in your bath.

If you have wide oak trim an want to do a wood blind but not enough debth to do an inside mount, then maybe a mock inside mount might work. It's an outside mount but attached in a fashion so most of your trim is exposed around your window. Otherwise a cordless cell shade would offer you privacy and pretty much disappear when drawn up. Also can someone tell me what DH stands for. I hope it's not what I think it is :)

bob-"DH" is dear husband! :-)

Thanks for all of the suggestions. Can't do bottom-up shades as the cats love to perch on the sill. The window film would cover up the really pretty view (at least for 3 of the 4 seasons!)....hadn't thought about Georgian shutters-will look into those, and the mock inside mount for the wood blind........I am not a real fan of cell
shades or miniblinds. Thanks for all of the info...keep those ideas coming! Please! :-) (Bob-there is a link in my post above with a pic of the window-does it look like a mock inside mount would work?

Yes it would work with trim like the pic above. I included a pic of the bracket placement for a mock im, where they didn't want to cover there trim. I have another pic of the complete blind but have to put it in another post since I don't know how to include two here.

Here is a link that might be useful:

Pictue quality isn't the greatest but it gives you the general idea.

Here is a link that might be useful: