I think I'd go with white cabinets & start with them mounted higher than the ones you have now. It looks like you need some more space between the overheads & the counter top. If you can afford go with them all the way to the ceiling. Maybe in smaller cabinets at the top with seeded glass doors & LED light in them & add some colorful pottery or art glass in the uppers. Go with a white quartz counter with a marble look. Add under cabinet LED lighting on dimmers.

Make or buy a Roman shade in an aqua color print for the windows. Have them droop in the middle.

I'd recommend going the extra mile and replacing the paneling. It would really update the space.

I'd paint the walls cream and the cabinets sage green. :)

I like that you're keeping the paneling. Definitely white/off-white custom cabinets.

Some ideas.

Wide white planks for ceiling to lighten up space?

If you like light colors then you should use aqua color that will give you a refreshing effect.

I agree with Darzy....embrace the pine walls and cabinets! I think vintage look appliances would be amazing. Flooring could be awesome in a rustic brick or cotto tile and laid in a pattern like pinwheel or herringbone or other really "classic" pattern. Provide counters in stone like Caesarstone "Pebble" and last but, not least spend your extra money on improving the lighting. Ceiling probably needs addressing as well but, need more photos to say for sure.

Grayish greens and blues along with olive green look wonderful with the yellow tone of knotty pine. I have knotty pine doors and trim, and a lot of green in my house and love how the colors enhance each other.

If you want painted cabinets, I think something in green would work very well. Anything from light to deep could look good. But I'd be careful not to go too far towards teal - I have lived many years with a lot of pine in my homes, and for some reason teal always looked awful.

Red appliances? The cash you save not replacing the cabinets can allow for awesome appliances? New knobs, pretty faucet, counters, and a new floor WITH your knotty pine can look fab.

I think Darzy is on the right track!