Your kitchen looks beautiful, good job!!! I would suggest that you tile the top.

You certainly could tile above the window up to the ceiling of your valance box. The more problematic area is to the right and left of the window casing - just not enough room to cut and lay tile - not to mention the installer will not be happy! Given that, the tile may look more like a "stripe" across the top of the window. Maybe better to paint out the whole area - window casing, tiny reveals right and left, and above the window the same cream as the cabinets. This way it will read more continguously and the valance will be almost a textural element. Hope that helps.

Thank you Deb! I like that idea of painting everything the same color (easier too!).