E. Something else. Move the light.

Can you post a picture of part of the room that has the crown molding? From seeing this photo my reactions are two:
E. Something else. Leave it as is and do nothing.
E. Something else. Continue the tile around the window.
Or move the light. Sorry not much help.

E. Something else.
Maybe do nothing on that wall. If you do a window treatment that will be your focus anyway.

I don't think that wall really NEEDS crown. But if you do, then I say move the light.

Agree with Breezy. I would save a tiny bit of $ and skip the crown there. Has a nice open feel.

We're just finishing up our kitchen with a similar situation. We did not put the crown between the cabs over the sink. We left it plain and it actually looks really nice, clean and simple. We replaced the recessed can over the sink with a pendant that matches the chandelier over the table, and it is the focal point of that area. We also put it on a dimmer and it is now our night light as well. I love it! We are not putting any valence or window treatment on the window at all.

Update: My trim guy put a full piece of crown up there, running between the cabinets. Sometimes you just can't leave the house or the contractors make decisions on their own!

Actually, I think it looks fine and may leave it. It overlaps the outside of the baffle a bit but really doesn't bother me.

My husband is a crownaholic and would have felt the room was not finished until that space was filled with crown. Sad, I know.

Thanks for your input! S.

Can't you get a smaller trim ring for the light?