yes, you can use wooden window frame and shutters. provided wood should be properly seasoned and both ends are sealed by using liquid wax.

First you need to decide on the look you want to have on your bathroom. If it is classical stained glass suits the better and for modern go for frosted glass. But before going to stained glass make sure that the bathroom furnishing and fittings should be in a classical type. Where as for the frosted the bathroom furnishing and fittings are readily available in the market.

Yes Rakesh, you will have to cover the window to make sure the eyes are not strained due to bright light from behind the TV. Choice amongst curtains or blinds should depend on the room interiors. However curtains would be better here. Thanks Nitin CORNERSTONE DESIGNS Bangalore

Fanxing, you could opt for electronically controlled blinds. Half of your challenges could be addressed at the click of a button. Thanks, Nitin Cornerstone Designs Bangalore