Also doing away with the wallpaper and light fixture so ideas welcomed!

You'll need to post a floor plan to get comprehensive advice. Personally I would be looking for a new location for the fridge.

Unfortunately don't have the budget to change the floorplan/move cabinets, sink or appliances. Looking for advice on cabinet type/color, countertop material/color, flooring material/color, paint color. THANKS!

Most people wouldn't use a desk in the kitchen, so I would do a counter top with a beverage station or use it as the place for a microwave oven. Go retro on the cabinets to compliment the tile, maybe in a cream color, walls to match cabinets. Counters would look good in butcher block or a retro looking laminate.

You might be surprised at the miracles the pros here can work with complete information. If you are putting in new cabinets you may be able to shuffle appliances around without any added expense.

As far as materials are concerned you will want to stick with the retro look if you are keeping the tile. I hope you are planning to have the tiles thoroughly cleaned and re-grouted. Other suggestions would depend on budget and square footage.