To be honest, I don't know what work best, but it's probably not necessary. A 1x1 transparent image (which I actually changed to a white dot) is quite easy to do.
Yes, but this way it will not work when cursor points to area of widgets (I thought this is the problem).
You do not have to return 1x1 transparent image, I think returning Null (or Image()) would work as well.
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Of course, for the future, how would I change the cursor image when I hover over a button, for example? Would I need to have a pointer to the window and call its cursor function again?