The window is too low.

From the limited photo I would be inclined to keep current footprint and add a decorative chest cabinet under the window.

This question needs context.

it looks like youre eliminating a dining area? crowding a family room?

For the best answer, you need to post a drawing of the space including windows/doors/cabinets as it is with all dimensions.

Also, what problem are you trying to solve? There might be a better solution than just adding more cabinets beyond the kitchen proper.

Neither. What would be the purpose of the counter out into that area?

Neither. The window is too low, as already mentioned. Go up to the window. Or follow the good suggestion of leaving it as-is and utilizing a decorative chest under the window (note the word under)

Neither for all the reasons below. It will look 100% out of place and like a who did it and ran either way.

I too agree no extension.