I would consider something light with some other colors to mix in like this. http://t.homedepot.com/p/Silestone-2-in-Quartz-Countertop-Sample-in-Mont-Blanc-SS-Q0220/203674451/ I like the wood paneling and would paint it a white with a warm feel to it. A white will reflect a lot of light from your large window. I wouldn't paint the window casing as it might tie in better with the rest of the house. Good luck!!

The blue is awesome (grey is too trendy)! The reason it stands out to you is perhaps because it's the only real colour there. Bring in the blue in a window treatment, a small appliance that sits on the counter, a pretty tray or area rug. Also, it is more appealing often if there are more than 2 colours - so right now you have a white and blue colour scheme - bring in red or orange or fushia - something from the other side of the spectrum (like you did with the yellow flowers but in a more permanent way)!

Your suggestions are really greatly appreciated. My town house unit is under complete exterior re-cladding works, prompting quite substantial interior makeover (i.e installtion of ducted air con, replacing wall to wall carpet with timber upstairs, and tiles in open space downstaris, replacing creamy wall paper will be replaced with neutral white paint. So my green kitchen with creamy formica counter (bench) top should go. I don't hate green simply had egounh of it after long 15 yeras! My small U shape kitchen is due for complete makeover, I think! I'll probably go with new cabinets (lower one for microwave) up to the ceiling, when move fridge at the end I'll go with panel with matching colour up to the ceiling, expanding counter top on the other side to the fridge. I guess that removal of the cupboard can be compesated with extension of the counter top so we can fit 3x drawer underneath and cabinets up to the ceiling can provide some useful storage space. Backsplash in same white palette or darker in contrast? Your kind ideas please!

Stacked splashbacks always look wonderful!