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.

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

The distance between chimney and hob needs to be 26"-30" : 65cm-80cm. placing it above the window, suction power is reduced, placing it in middle of the window, will make the window ineffective. Island chimneys are best suited to be positioned in middle of the room, the duct running through false ceiling. also they fall in the expensive category. it is best that you move the hob position to side of the window, or totally to the other side and do chimney core cutting there.