In this paper, we address the problem of simultaneous estimation of structure and restoration of images from blurred photometric measurements. Given the blurred observations of a static scene captured with a stationary camera, under different illuminant directions, we obtain the structure represented by the surface gradients and the albedo and also perform blind image restoration. The surface gradients and the albedo are modeled as separate Markov random fields (MRF) and a suitable regularization scheme is used to estimate the different fields as well as the blur parameter.