The song was supposedly commissioned for the film 'Absolute Beginners' but never used. Some of the lyrics may derive from that. Also, EC wrote this while he was on a big Richard Thompson kick and the imagery and tune have always evoked Thompson for me.
EC said the tune was based on True Love by Cole Porter, and Scarlet Ribbons and he sang it on a BBC documentary about Spike. I love the song, but I am not sure that cellophane windows would last too long on a warm winter stove.