Here's what I was trying to explain for the basement windows yesterday @Amanda Middleton You guys have the space to put the curtain rod out further though so you don't have to cover the window so much, but I think it looks nice.
Guide to Hanging Lights
A Small Space Makeover in Downtown Manhattan
A Small Space Makeover in Downtown Manhattan - Home Tours 2014 - Lonny
Plenty of light keep this cozy sleeping area from seeming too claustrophobic.