Cordova File Plugin
platforms: android,amazon-fireos,ubuntu,ios,wp7,wp8,blackberry10,windows8,firefoxos
$ cordova plugin add org.apache.cordova.file

Modifyed org.apache.cordova.file

You can download modifyed plugin using --

cordova plugin add

If you are using file plugin you need to install org.apache.cordova.file-transfer plugin. With out file transfer plugin it will not work.

Take a look --

    window.requestFileSystem(LocalFileSystem.PERSISTENT, 0, function(fileSystem) {
        fileSystem.root.getFile("readme.txt", {
            create: true,
            exclusive: false
        }, function(fileEntry) {
            fileEntry.createWriter(function(writer) {
               //saving image from server to windows phone isolated storage
            }, null);
        }, null);
    }, null);

For Displaying image in view-

<img src="../tree.jpg" width='100%'>