An "Image Denoiser" provides a probabilistic process for denoising color images by segmenting an input image into regions, estimating statistics within each region, and then estimating a clean (or denoised) image using a probabilistic model of image formation. In one embodiment, estimated blur between each region is used to reduce artificial sharpening of region boundaries resulting from denoising the input image. In further embodiments, the estimated blur is used for additional purposes, including sharpening edges between one or more regions, and selectively blurring or sharpening one or more specific regions of the image (i.e., "selective focus") while maintaining the original blurring between the various regions.