I would take it straight up to the ceiling...

Usually I would say to take it to the ceiling, but I think you would have a really hard time getting the areas on the outside of the windows tiled, since the space is so small. I would tile from the counter to the bottom of the cabinets, and then bring the tile to the bottom of the hood in the middle section.

Stop at the hood. You already have enough going on with your bulkhead, etc.

I'm assuming your hood does not go end to end between the windows, if that's the case it will look better to tile the whole space.