Insulation, Radiant and Vapor Barriers - Bay Window Insulation

I am looking to install a bay window on a gable wall (16" projection). I would also like to install 2 recessed mini lights in the headboard. Any suggestions as to insulating the space between the headboard and roof rafters (7" pitch)?? A 3" to 4" space is required between the insulation and the light fixtures. I thank you in advance for any suggestions that can be offered.

The mini recess lights you're talking about are probably halogen lights. Which get very hot when they're on. Considering the amount of space that you'll above the headboard and the amount of clearance required for the lights, you are going to end up with a moisture problem in that area. This is because all heat has moisture in it.

I would suggest low voltage lighting that can provide the lumens comparable to the halogen but don't produce heat anywhere near what a halogen produces. If you search the web for low voltage lighting, you'll find quite a few manufacturers. More expensive than the halogen, but considering the consequences of using the halogen in this application, the low voltage lighting is well worth looking into.

Excellent suggestion. Now do I consider insulation between the rafters or on the headboard?? (or both?)

Insulation should be applied between a conditioned and unconditioned spaces. If above the headboard is unconditioned, then it should be insulated. If your rafters are in the attic, they should not be insulated. If the rafters are part of the ceiling for the room, then it should be insulated. In other words, any surface, sheet rock or head board, that is exposed to the heat within the room, behind that should be insulated.