One option, I would get a very large rug so that all the chair legs and at least one corner of the sofa is on the rug. I think I would also bring the table set away from the window a little more. I think there is enough space to place the two-seater opposite the table in front of the window. or bring the table forward toward the kitchen ....... With the sofa centered to the large window. They probably will not be opposite each other, but at an angle which is still ok. They might seem more functional for the table set to be closer to the kitchen. Another option is two rugs in wide runners. Creating a walkway through the center of the room. Still thinking the sofa center of the right window. Just some ideas :-)

i agree with lighting trends on the peach ,here are a couple of palettes to choose from note your lighting will accentuate the mood and can give the hue you want , but definitely go for a neutral , the colours are from sherwin williams, benjamin moore , behr , and kelly moore

Usually when you get side panels you automatically have space on the sides. If you have a full depth cabinet on the top, you automatically have space at the top and in most cases you will have leave at least 1 inch of extra room for the back of the refrigerator, so there is always air circulation since everything is enclosed. In the 70's they use to make a small recessed space behind like Fred said, today you don't have to do that, most Ref have flat backs, recessed wiring, not to mention the supply for ice-maker also comes in a flush mounting kits for the wall... so pretty much everything is recessed and only space you need is for air circulation and 1" is more then enough. In addition, if you make recessed area now and you push ref to far you will never get your doors open so doing all that is a waste of time, in addition most manufacturers starting to make 30" side panels.

What a beautiful house, Shahbaaz! I live in a similar house - a 150-year-old colonial bungalow in Kumaon. You have already received lots of excellent advice from better-qualified people, so all I would say is, keep its age and heritage character the central theme. The white tiles do clash, I am afraid ... flooring with terracotta tiles would echo the roof and look lovely. The columns and the arches over the doors and windows are amazing. But I'd say, leave it all chuna-painted - there's a beauty and softness to it. Don't let the painters add too much neel (indigo) in the limewash -- in the hills where I live, they put far too much if I don't watch out and the result is a harsh white. Natural lime has a softer, creamy look.