are you doing window trim? if you get wide enough trim to go to the cabinet sides, you can stop the tile.

or, you could use the tile as the trim and go all the way up

or tile all the way up w/trim around the window. I like these looks the best

with the window trim ^

or without the trim:

if you can swing it, get a sill made from your countertop material

I still like it up to the ceiling. even w/the casing. sconce is nice too

make sure you get bullnose tile edges for the ends (or use a Schluter Jolly or a pencil liner)

some diff ways to tile inside the window. this looks a little messier than doing bull nose edges

stopping w/the underside of cabs. they used a pencil liner here. and window casing.

Thank you! Sherwin Williams Escape Gray. We are very happy with it.

Beth - I think we are leaning towards getting window trim added. It will correct the waviness of the dry walled I window frame. I really appreciate the examples.

Do you think tiling around the window and them tiling up to the cabinet on the left and right side runs would look ok?

yes. it's a personal choice. off to the right where you have the peninsula, will there be an overhang? some like to take the tile out to the overhang. some stop where the upper cab ends.

just make sure to get proper edging (the Jolly, bullnose, liner,,,)

Got it. Of course, without much thinking, we bought a tile without a matching bullnose or pencil. I ordered a bright white pencil and hope it matches. The tile has a glazed edge. Do you think that with matching tile caulk would be sufficient for an edge?

i've seen it done, but it just depends how far out it extends. you can fill the sides w/grout. are the tiles glazed on all the edges? if they're not, you'll need edging.

look into a Schluter jolly. get the thinnest exposed edge

would look like this. comes in white too

or, look for this type of white ceramic liner

so you see the painted edges on this one? messy looking. you don't want a lot of excess.

this is a nice quarter round edging finish

Thank you. I really appreciate the feedback. I just order some pencil and quarter round to see which edge I like better.

I forgot to add, only one side of the tile has a glaze edge - about 1/2 to 2/3 of edge. The tile store told me to use nail polish to fill in the rest if need. Was thinking I would have to do that to long way unglazed edges as well. I going the trim route first. Not sure how to do the tile around the window with trim though. My tile guy should be able to figure it out.