I would suggest you take out the cabinet that is to the right of the stove and use it elsewhere in the house -- perhaps in the bathroom or dining room with a hutch above it. Then, I would suggest you have someone install a lazy susan cabinet in the corner between the sink counter and the stove, meaning you would move the stove down a bit and have a small cabinet/counter top to the right of the stove. I would suggest you have the cabinets refinished in white and then paint the walls a pastel you like. If you would prefer white walls, then add white-painted crown molding and paint the ceiling a light neutral blue, such as Sherwin Williams Niagara Falls Blue. Then, I would suggest you choose a favorite accent color and use this sparingly in accessories like towels, pot holders, small vases or floral arrangements, and a valence above the triple windows. For a genuine 1940s look, you might have white ceramic square tiles with a rectangular red border installed as a back splash behind and above the stove. If you are replacing counter tops, I would suggest a light color such as white with a beige or light grey vein or striation for some sort of pattern. You might be able to find the same color and design in floor tile OR opt for a wood floor as another poster suggested.

The door into ensuite currently opens in (hinged on left). Im thinking we will need to use a cavity slider door (which means shifting the bedroom light switches!) This project is growing!

I could see doing something like French doors with opaque glass so the lite could come thru to the rest of the house. Also double French doors would allow you to open the area up completely whilst doing laundry. You could even leave everything where it is (dryer) and build some storage on the left side. I would image the sink would be very useful - I'd be lost without mine in the laundry room.

Hi Ang, I thought I'd follow up my earlier comment with pictures of before and after of pine cupboards I specified to be painted in a budget makeover. My clients tell me people presumed they had purchased brand new cabinetry, so startling was the makeover. Somehow I have put the "after" on the left and "before" image on the right!