Because you don't really have space for a proper rod, I would stick with nicer blinds mounted inside the frame in the kitchen. Not seeing the area, you might get away with curtains/drapes on the second window. Is there another window in that area that could have matching curtains?

Hi, thanks! I’ve added a picture of the space and the blinds I just installed.

The white is so stark I really feel like they could use some warming up.

There is no other window, just the two I photographed—though there is a standard size glass door.

Forgot the window pics—they are white natural (bamboo?) shades

I’d ignore the recess and hang all at the same height.

I would put a rod inside the inset of window #1. Maybe a roman blind. All windows need proper curtain panels. "Nice shades" is an oxy moron and give a room the college dorm, just moving in look. Your windows are so close to the ceiling you could easily hang them so they just brush the ceiling and the floor. Rods are best hung so when the curtains are stacked open they just brush the casings to give maximum views out the windows.

I’d hang panels within the recess, them hang panels at that same height for the other window. So, your original blue line.

Thanks all! I don’t know that I have a consensus yet but appreciate the input! Added one more pic head on with the new shades I mentioned (pls ignore the mess)