Is the engineered wood trim approved for outdoor use? Generally you can shim under the window trim to bring it up to the level you need, and flat so it doesn't rock on the window flange. Any time I am cutting up cedar or PVC for any use I keep all the trimmings to use for shims. If you need less, you can use multiple layers of sticky flashing.
Spaces between the trim and siding, and trim and window should be caulked with good quality paintable caulk. You should also be putting metal flashing at the top and bottom when appropriate.
Spaces between the trim and siding, and trim and window should be caulked with good quality paintable caulk. You should also be putting metal flashing at the top and bottom when appropriate.