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Outside mount shade on window with decorative trim

I'm having such a hard time deciding what to do with this window! Any help would be much appreciated.
This will be a bedroom so we want it dark for sleeping. Being painted black, it is quite dark, so we want to encourage light from the window when not sleeping. BUT it also opens directly on to the porch, so we need privacy.
I'm pretty certain I want a woven wooden blind with room darkening liner for sleeping and white linen curtains for privacy and to diffuse light into the room. The curtains would be mounted above the window and would go to the floor.
The initial suggestion was three inside mount blinds. This would clear the window crank. But I know I would spend too much time making all three blinds the same height.
Then I thought a roller blind with a reverse roll above the window to clear the trim. Then I discovered wood roller blinds don't come with liners.
Now I'm thinking a woven wood Roman shade mounted above the window, but I'm second guessing my self on how high above the window to go. The room has a cove ceiling with about 23" from the top of the molding to the beginning of the curve. I thought I would mount 8"-12" above, but now I'm thinking that's too much.
So, how to do the blind? Shouldn't it be mounted at the same height as the curtain rod?

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