On the cheap - con-tact makes a roll of frosted paper that you can cut and stick to the window. I've done it for privacy and it doesn't look terrible. It's sold at Home Depot, Ace, True Value, online etc.
http://www.amazon.com/Con-Tact-Adhesive-Covering-Frosty-Diamond/dp/B0080K7XCU
More pricey - my parents have wood shutters over the windows. They look really nice and a lot of light leaks through. Perhaps not as much as the frosted con-tact paper, but it works.