What is the purpose of the curtains? Privacy? Sun? or just decorative? Not sure where these windows are in relationship to each other. Also, not sure what your style is. I'd opt for some vertical blinds, something like these, hung to fill the entire space that goes above your windows, not the entire wall.

I would hang one rod across the inside wall at the top where the bump out starts. I would paint the window trim white and paint the area that is recessed white as well. Than will make it feel like one big window instead of an awkward bump out.