If you can't clean up the painted edge, you could always add a 1x3 piece of wood as molding. You can even carry it up to the ceiling to frame that wallpaper. I don't see that paint color in the wallpaper, or maybe it's a lighter version of the flower centers. Maybe stencil on a design using the darker color, or another color from the wallpaper to help tie it together. Then narrow floating shelves or vertical frames or something in the painted areas it you feel you need it. Maybe turn the bed around so the wallpaper is the headboard.

You may also want to consider a screen or pass-through bookcase to visually divide the "bedroom" area from the living area. I like your table and platform bed ideas. Consider whether the radiator will have enough room to "radiate" with a bed against it though. www.twitter.com/216Sharon

Keya, glad you decided to take the one reader's idea about moving the armoires in front of windows that you don't need and giving the bed a wall of its own! And, yes, you can have Roman shades on one wall and layered drapes on the other. When I had drapes made for my tall sitting room windows/doors, I had them use the same fabric for the Roman shades for the smaller windows on the other wall. For me personally, in these older Indian homes with all the odd nooks and niches in the walls, perhaps it would be more soothing to have a light/med tone paint on the walls that blends with the drapes/blinds for an 'uninterrupted' look, and I would use the same color on ceiling and beams. (but that is just my thought) I would start the process with a large carpet with your favorite colors, then choose your Bedcover & cushions, then your wall paint and fabric for drapes/blinds ..Not certain what style you like, but if you really like a particular Ethnic bedcover fabric, you can always have them stitched into curtains or Roman shades too. Can't wait to see the "After" pics!

your choice of furniture pallet is realy beautiful.