There are tons of papers available that would go with your midcentury home. Many people tire of a paper quicker than they are ready to redecorate and they can also look dated in a couple of years. Metallic papers were big im midcentury...perhaps a metallic silver paper? Are you also considering paint? You can get it in so many textures and a blue wall to match the blue in your loveseat would be lovely with some midcentury art and sculpture, or photographs on it. A mirrored wall with or without art or sculpture would also work with midcentury. These treatments are easier to adapt should you wish to change the look slightly from time to time. I would suggest replacing your stairrail with chrome or acrylic if that is in the budget...see how well the loveseat frame looks with the fabric? I hope you will post the "after" photos for us to see. Above all, enjoy the process!

try Benjamin Moore Key Ivory West for the walls - it's a soft color and will brighten the space, but will work with other colors. Put a funky rug on the floor. Go to Marshalls or TJ Maxx or IKEA and get a comfy chair with a a small table next to it. If she has any artist friends at school, have her ask them to do an oil or watercolor of something she likes in a large canvas for over the bed (don't frame it). Replace those lights. Or, for over the bed, just print out a bunch of 5x7 photos of friends or whatever (black and white would make a statement) and arrange them in whatever frames you like. Going for neutral or soft colors will enable you to use accessories for color and change the look when it gets old.

Depending on you budget, I'd replace the counter tops and flooring. I agree with removing the dark valances. Replace the top corner cabinets with 42" cabinets or remove entirely. The ones there are too small for the space. An island, not that you need the counter space would cozy up the area. Also replace the front on the dishwasher with stainless steel to match other appliances. Your layout is good, no changes there! If you decide on an island, you could include stools there and remove the current peninsula, this would open the area to what ever room is adjoining the space. Good luck and have fun. It is a really nice space.

I agree with Diane's ideas! Grey is a nice color. The only thought I had on having a corner sink cabinet, you may not be happy with it in the end. You have a little corner, and the sink may be too small for you in the end along with not having any storage space. If you can't find any curtains that you love, try a cheap roller blind for now. It will give you a visual look and an idea if you want to stay with a curtain or going a bit modern with a patterned blind or even a roman type shade. It could turn the cozy look into a clean modern look. Framed mirrors are expensive. Call a glass company in your area and have them give you a price on mirrors. It might be quite nice to take the mirror down, and replace the wall there with a complete wall mirror to fit, stopping the mirror at the vanity, and continuing the mirror across the vanity between the sink and window. It will make your bathroom feel much bigger, even though you wont be able to see in the mirror over the sink. Close up the vanity doors with new door. Use props first (white poster to cover up the doors) etc. before you buy anything! Stick on tiles are a great idea! They clean nicely and look great. Although I wouldn't go with the wood look. Your bathtub tiles are old fashioned, go with a stick on floor tile that is easy to look at, try to get samples first. Remember Gray is a sleek clean modern color. It is not a cozy country color. If you don't like the grey in the end, maybe a real pale blue or butter yellow (that would be more of the cozy cottage look).