You should be able to do three panels in those windows up into that arch with horizontal louvers and fully functional. Your shutter maker just needs to line vertical posts up where you have vertical mullions! giving that center shutter something to hinge to. Here are a couple of similar windows I have done. It's a partial arch but it's the same concept with yours

Hi evas1, We are loving teal at the moment too! However once you find another colour, you will want to switch up the paint. This is why we are suggesting you go neutral with the walls (Dulux White exchange half) and accessorising with colour- making it interchangeable as seasons/trends go by. Check out how we style teal and blue! Throws, cushions, velvet bedheads, pillows, bedside lamps, artwork & ottomans are a great way to pack colour into the room.

Thanks everyone for your further comments. No problem about it being an old post, always nice to communicate with people about design solutions/problems. Jilly, I posted some photos on 1st January 2016, they appear further up in the post. Garden Beet Pty Ltd, and Morel Construction Ltd, both of your solutions look great, but our problem still remains the western Queensland sun which is pretty vicious on anything that will either wilt, fade or break down. It was quite a difficult challenge to come up with something that was affordable, workable and durable. I would love to have had plants because I believe they soften large "hard" exterior areas, but we have decided that we will do that with pots around the pool area. Still have that to do, even after all this time. :) Thanks everyone for re-igniting this chat. Jilly, hope you find something that works for you.

I'm keeping the window white but adjusting the splash back so the window frame on the left can go all the way down to the vanity. Was planning to keep it white with a white sheer curtain, thought it would be a nice contrast. Yes I'm painting myself. Would have been easier to do between demolishing and putting in new vanity but can't decide yet so I'll wait and then maybe just start with the middle feature wall painted and see if more is needed.