Thank you Brickton and Willow Decor so much for your advice. I clearly can use all the help I can get. WD I actually have your site bookmarked already! I love that clawfoot under the eaves and wanted to use one in my space but I don't want to leave my guests without a shower option and I can't figure out how to put a shower curtain in without blocking the visual of the window. Does anyone have any experience with building out a partial tub surround like the one I've described? I'm teetering on whether to just go with an intergral apron with a curved line to try to reduce the boxiness of the space, but I do love the paneled look that is often used with drop in tubs... Also, for the design asthetic, any opinions on whether putting up beadboard on the walls will be too much for this tiny space?

Lovely sense of style! Bravo! We investigated porcelain marble look-alike tile but we decided on real marble which we will have to care for without any acidic products. Beware that there is a repeating pattern in marble look-alike porcelain tile like (on wall paper which will give away the secret.) We found great deals on Amazon and at Lowes for Bianco Carrara subways, pencils, chair rails and floor and shower floor hexes (1/3 the price of tile stores). We found a gorgeous remnant for our shower bench at a marble and stone shop at an amazing price. I can't wait until it's done to post photos! But back to your house... it's gorgeous!

I don't have a tub recommendation other than to beware that Jacuzzi type tubs sometimes have electric controls where they cannot be used with showers. Some use pneumatic switches to be safe around water. I will say that I think your contractor's gout suggestion is one I would not use. I have always use epoxy grout around water. Near sinks and in the washroom. It costs a lot more to begin with but it is impervious to water. Not my experience with any other grout. It is also impervious to mold and grime. Comes in any color. They used to carry it at Lowes (probably still do).

Pictures please