The lighter-- lime green towel would work. I would get a glass soap dispenser and, really, any beautiful piece of glass would work well for a toothbrush holder. You're in India, so you don't want to pay for international shipping, but here's an idea-- take a look at these cobalt blue dispensers on Etsy (and this is just one example-- they're all over the place): http://www.etsy.com/listing/116043015/cobalt-blue-glass-pint-jar-soap?ref=sr_gallery_25&ga_search_query=+glass+soap+dispenser&ga_order=most_relevant&ga_view_type=gallery&ga_ship_to=US&ga_search_type=all I'm not sure the soap dispenser and toothbrush holder have to match anything in particular. I just think beautiful glass is beautiful glass. I mean, take a look at this depression glass pitcher, for instance. If the right size, I think something like that would be unexpected and amazing sitting against that beautiful grey tile. This particular one is rather expensive, but you can find ones less than this and along the same lines. http://www.etsy.com/listing/104529409/vintage-pink-depression-glass-pitcher?ref=sr_gallery_5&ga_search_query=depression+glass+pitcher&ga_view_type=gallery&ga_ship_to=US&ga_search_type=all When it doesn't match, it will seem simply like something lovely (and functional) you've had on hand-- maybe in your family-- for a long time. I feel quite sure you can find beautiful glass in India.

On your paint problem I can't be much help. This usually happens because of damp -- please get a damp expert to make sure that there isn't any damp lurking in your walls. I had this once when I had pipes leaking inside the walls. I didn't know that. The other alternative is something like painting before the plaster is dry or some kind of chemical mismatch. I do know you will have to scrape all the mucky powdery stuff away and start again, at least on those areas. Don't try to seal and prime and repaint until you know exactly what the problem is and how to fix it.

You've got a great space here, and there's so much you can do with it! Do you know what style you're looking to achieve? If you've already got a red and white colour scheme going in your kitchen, you can always opt for this in the living room. Sometimes grey can make the room look a little dark, so it's always worth investing in a white base, and build from there. Maybe change the colour of the curtains to something a little lighter and richer?

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.