how to frame around basement window??

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Want to finish the basement but have forseen some problems. I have a block basement and want to frame it out using 2x4 studs insalation and 1/2 inch drywall. What can I do about finishing around the windows? thay are tilt in windows and I only have about 3/4 to 1 inch from the sides of the block to the windows so thay can open. A little help would be great thanks