We have casement (crankout) windows that fog between the panes when it rains, and some have frame rot - basically they are reaching the end of their servicable life.
We're going to be residing the house (cedar shake or droplap).

Messed up I guess and already did the interior work last year around the windows - custom routed moldings etc. and the painter (my wife) says no-way to repainting and hiring another painter is not an option

So...suggestions on how to proceed (either on the below or if you have other options!

Options as I see it that wouldn't disturb the interior:
1. Somehow buy replacement "glass panels" and painstakingly repair the wood rot (not seen such an animal however)
2. Do nothing to the glass, painstakingly repair the wood rot, and say the fog is a privacy feature.

Thanks in advance,
Thom