I would spend some time thinking about how much money u want to budget for this project, how much of the work can u do yourself, who would help u, what's best when thinking of resale? U have many possibilities. Have fun.

How about painting your cabinets white, possibly add some trim to the doors and adding dark knobs. If you want some open shelves maybe you could buy or make some for mugs, etc. Not sure if taking doors off is really practical unless you have lots of cabinets and can keep open shelves looking neat. How about beadboard for a backsplash or subway tile. Are you looking at changing out your counter I would change your light out for a school house style light. They aren`t real expensive. If you are looking at changing your cabinets out down the road you may not want to spend a great deal but paint alone and new hardware will make a big difference. A rustic wooden table on wheels would work next to your stove for storage and extra counter space. Please post when you are finished. Love cottage style as well.

My thought would be heavy on the white, then add color with cottage and shabby chic elements like "finds" in the area of cannisters, tableware and linen, curtains, dishes - cruise the 2nd hand shops to flesh out your theme inside the white box.

HI -- I agree with Carolyn to not use fabric . If you remove some of the doors , just paint the inside of the cabinets and shelves a pretty fresh color like maybe a pretty blue for open shelving . On the other doors apply some picture molding on the doors and paint all a clean white and also paint those interiors the same color as the open shelves .Normally I would say to remove the fluted wood valance , but this time you should keep it for that cottage look . Put on some cute knobs on the upper doors and antique looking pulls on the lower cabinet doors and drawers . Add some storage on each side of the stove or have a rolling cabinet with a cutting board top . Continue that cutting board top for each side of the stove . Maybe find a rustic wrought iron lighting fixture . Well there is a start for ideas and hope that helps.

I really have to agree with lefty- I would love to see the inside of any cabinets you take doors off painted a great complimentry color. I would start with the one over the sink. I would paint the lower panels on the entry door the same great shade, Keep the color scheme light and simple with that accent stealing the show in the most interesting ways.
A rustic island and some metal stools will be a flexible space option. Can the range go toward the right a bit and add wall cabinets under the current one to bring them all the way to the floor it will create a mini pantry.