Hi Neeno, I've seen the use of Zebra ( vision ) ROLLUP blinds with one for each side that will cover down to the lower half window rather than having four blinds and have them fitted to the outside top edge and to the side edges of the pelmets ( window frames.) (If you get to see utube video clips your see what I mean . ) The avantage of doing it that way will allow you to buy only two blinds rather than four . The cost difference between two blinds and extra fabric required to cover the two windows will most likely be cheaper than the extra cost of two extra roll tube mechanism / chains etc etc. when fitted in the recesses of the windows . Also ,due to the bulkeness of blinds , two would no doubt look better than four doing it the way I suggested . Fitting to the timber edges will offer a couple of advantages . One of which will clear the windout handles fitted to the opening widows . Two ,will offer better light reduction from night time lights as the blinds will cover right to frame edges. Three , the design of the Zebra blinds only requires a few inches of the chain movement to close up or open up for vision out or add privacy where normal blockout ROLLUP blinds needs more adjustments and will not offer the same privacy options that the Zebra blinds can offer . Also, if in bed you can open the Zebra blinds slightly by a few inches or roll up just above the top of the lower window ,depending on how much vision and privacy you need and look out of the window whilst still in bed. Being such narrow windows, the small bit of wall between them proberly would not mater if one blind fitted at the top came down over that wall area down to the bottom window. Also you should concider the solar film tinting to offer improved privacy and insulation & fade protection etc for when blinds or even curtains etc are opened up altogether . Although I'm in Tasmania , I have a manufacturer I deal with on the mainland that could arrange sale / installation if required using the Zebra blinds or other types as well contacts for window

Do you need to have a door at all Denise? If so sliding might be best so that it doesn't take space from the room.

Thanks everyone - your comments and diagrams have given me plenty of ideas I hadn't considered. Perhaps shifting the wall is a little drastic! I'm now thinking of going a long U shape like this. I'll add a few upper cabinets on the left side too for the most frequently used stuff from the pantry (as the pantry is still a distance from the stove/oven). The fridge as you can see is now right amongst the action. We also have a chest freezer hiding out in the laundry which I can move into the old fridge space...alternatively I might convert it to a computer workstation as suggested. I'm leaning towards a peninsula rather than an island, just because I feel like it will give me a slightly more efficient/seamless work space, and we don't expect seating at at the island/peninsula will get used much given how close the dining table is. Any thoughts on this revised layout?

KASSY M idea would be great if you could get the Body Corporate to agree, there's a possibility that Christians apartment is "mirrored" with the next door's entrance beside theirs, which they might also like. This would allow the kitchen to run up to the old entrance with a longer island. My idea for getting extra light into the kitchen during daylight hours is to do what an Italian Architect did and put a highlight window on bed 3 wall (with suitable glass and blind in bedroom) A Japandi ( Scandi/Japanese) style kitchen with barn door ( my rail should be between the door and wall but you will get the idea, Cabinets a mixture of Black and white, timber benchtops?, The end wall is Pantries with 1m fridge space, The 800 x 1600 Island can be configured with draws. The splash back of clear mirror to reflect light, keeping the concrete ceiling and getting a lighting specialist to do the lighting, some will do this at no cost if you purchase the products from them