that is a great idea, how many people do you need to seat?

Do you have other table seating elsewhere, e.g., a Dining Room? (I doubt you do since I think you have a 960 sq ft home.)

ETA: What other rooms and sizes are there? Could you post a floor plan?

Keep in mind that you lose a lot of flexibility if you eliminate the table and replace it with a fixed-in-place/immovable island. With small homes, flexibility should be a goal so you can utilize spaces in various ways, depending on what you need at any given time.

Also, keep in mind that any cabinets under a 15" or more overhang (minimum recommended for counter-height seating) may not be the easiest to access.

If this is going to be your only "table" space, then I strongly recommend NOT skimping on overhang. Less than 15" may be OK for a quick perch, but not for meals or other extended use.

Removing that backsplash will help, and you can build in a T-shaped island off the peninsula. Because of your space restrictions I doubt you’ll be able to use lower cabinets unless they are 12” depth, and I’m not sure that juice is worth the squeeze.

Thank you I don’t have space to do seating on 2 sides and I do have other seating when we have guests, ..

You can move the sink. You can't move the drainpipe at the floor. Your sink can be moved and the pipe can be run from the new location with the proper drainage slope. Water lines are even easier to run because they are under pressure.

You can move the sink to the window wall run and configure a more functional peninsula design with the open counter area.

Nice idea but I only have 10” deep cupboards under the window, the pictures deceiving because the window is a bump out.

Why not add and island cabinets to the back of dishwasher / sink cabinets and get a new top that spans it all plus an overhang? Your chairs would face the microwave. It certainly won't be easily accessible storage. But perhaps useful for rarely used items.

I'd remove that wine rack in a heartbeat. Get wine storage racks for on the shelves in a cupboard. Add a cabinet where the wine rack is.

10" cabinets in a bumpout. Well. That's more challenging. Adding 14" to the bumpout with extensions to the existing structure might be a path forward.

If there's space available to add depth behind the built in hutch moving the frig there gives you a valuable counter work zone next to the range and a wide drawer base cabinet.

It might be time for you to give us the space measurements. Take a look at the new to kitchens thread to get an idea of what we need.

Eam44 is right - based on your comments, we need more information b/c your pictures aren't showing us the "full" story.

See the Featured Answer of the "New to Kitchens? Read Me First!" thread for the information we need.

Maybe an L shaped banquet on the sink wall and wall, then small round table with 2 small scale chairs. Maybe someone can draw it out for you.

"...Maybe someone can draw it out for you..."

Not unless we get more information, especially real measurements. Any drawings people do are WAGs b/c we don't know what we're really working with.

What you have maybe small, but it is lovely.

Removing that backsplash will help, and you can build in a T-shaped island off the peninsula.

I'm gonna tell the truth: I don't 'specially like the look of this layout, but I think it gives you more cabinetry than you're going to get any other way.

Add a cabinet where the wine rack is.
In a kitchen this small, I'd ask whether you can afford the space for a wine rack. It doesn't seem to be full.

A couple other hard questions: Could you do without the microwave? Could you do without the dishwasher? How 'bout a single drawer dishwasher? Could you go with a smaller refrigerator? You're in an every-inch-counts situation, and losing an item might be your salvation.

In small spaces, inches count. You need to tell people exactly how many inches (and other constraints) you are working with.

I like kendra’s idea.