IE8, IE9, IE10 Blinking Cursor Issue

I am making an editor which shows a toolbar on some text selection. The issue that I am facing in IE is that the blinking cursor still shows above the toolbar. This is specifically happening in IE. The blinking cursor comes on top.

Here is the sample for this issue:

$('.content').mouseup(function(e) {
  $('.shy').css({
    top: e.pageY - 30 + 'px',
    left: e.pageX - 30 + 'px'
  });
  $('.shy').show();
});

.content {
  height: 300px;
  width: 300px;
  border: 1px solid black;
  overflow: hidden;
  word-wrap: break-word;
  z-index: 1;
}
.shy {
  height: 100px;
  width: 100px;
  background-color: orange;
  z-index: 2;
  overflow: hidden;
  word-wrap: break-word;
  display: none;
  position: absolute;
}

<script src="http://code.jquery.com/jquery-1.8.3.js"></script>
<div contenteditable="true" class='content'>Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content</div>
<div class='shy'>
  <div>

Taking the focus out is not an option as there are more components in this application and this fix will not work for those situations. The fix needs to be completely autonomous.

Just add