A nonlinear optimization method is proposed for inverse scattering problems in the frequency domain, when the unknown medium is characterized by one or several spatially varying parameters. The time-harmonic inverse medium problem is formulated as a PDE-constrained optimization problem and solved by an inexact truncated Newton-type method combined with frequency stepping. Instead of a grid-based discrete representation, each parameter is projected to a separate finite-dimensional subspace, which is iteratively adapted during the optimization. Each subspace is spanned by the first few eigenfunctions of a linearized regularization penalty functional chosen a priori. The (small and slowly increasing) finite number of eigenfunctions effectively introduces regularization into the inversion and thus avoids the need for standard Tikhonov-type regularization. Numerical results illustrate the accuracy and efficiency of the resulting adaptive eigenspace regularization for single and multi-parameter problems, including the well-known Marmousi problem from geophysics