Window boards in traditional work were always rebated along the back edge and housed into the lower back of the window frames, regardless of whether or not they were sash windows or casements. With metal windows and modern work it was/is more normal to butt up to the rear of the window, but with shrinkage you can see the sort of thing the OP has. It's quite common on all-metal Critalls, too. The cill is on the outside often with a drip groove routed on the underside and may be machined-in, or again housed in. There are all sorts of variations, but interior window boards need to be separete pieces because you just can't tell where the spredas will finish the plastering
BTW a lot of people call them window cills, but if you look at a Spon's (the pricing bible for quantity surveyors) they are always referred to as boards. And as that's what I sometimes get paid on...