LMBBB's Profile

I'd put the sofa about 5 feet in front of the window facing towards the foyer. Behind the sofa I would hang the wire curtains/wall dividers that IKEA sells--they sell both light diffusing and totally opaque ones. They could be drawn back during the day to allow light into the entire area, then at night or when company is coming you could pull them along the back of the sofa blocking off your daughter's play area but still letting diffused natural light into the sofa area.l. The play area could be set up with shelves, bins, a colorful child's rug even artwork.
In front of the sofa you could set up a typical living room with chairs, coffee table, TV on the wall shared with the bedroom... and anchor the conversation area with an area rug and artwork.
In the foyer I would place book shelves for your and your daughter's books, a little library (there is some very cute library paper showing books).
In the dining room, I would add storage (buffet or shelves with baskets) reserving at least one section for your daughter's art supplies