Haskell is great for it's declarative style programs and most of the first hundred Project Euler problems are easy to write in such a way.

First of all, this problem is about ratios, so let us import `Data.Ratio` module.

    import Data.Ratio (Ratio, numerator, denominator)

From that nice formula it is easy to see that the process of computing √2 is iterative. You just need to decide what function to iterate. Let us consider this one:

    f :: Ratio Integer -> Ration Integer
    f x = 1 + 1 / (1 + x)

You can check in GHCi that it is somehow relevant to the problem:

    *Main> f 1
    3 % 2
    *Main> f it
    7 % 5
    *Main> f it
    17 % 12
    *Main> f it
    41 % 29

(`it` is the result of the last computation in GHCi.)

There is a function `iterate :: (a -> a) -> a -> [a]` in Prelude that captures such a process of applying some function to the result of applying that function to the .... and so ad infinitum.

    rootExpansions :: [Ratio Integer]
    rootExpansions = iterate f 1

Now, when you have all of the expansions, you need to filter and count those with numerator longer than denominator.

    numIsLonger :: Ratio Integer -> Bool
    numIsLonger x = length (show $ numerator x) > length (show $ denominator x)

Having all parts ready you can write solution in a declarative style

    main :: IO ()
    main
      = print
      $ length
      $ filter numIsLonger
      $ take 1000
      $ rootExpansion

---

As an extra bonus, here is unreadable minified solution:

    import GHC.Real (Ratio(..))

    main :: IO ()
    main
      = print
      $ length
      $ filter (\(n :% d) -> length (show n) > length (show d))
      $ take 1000
      $ iterate (\x -> 1 + 1 / (1 + x)) 1