Chicory, here is a pic of the curtains as I have one tacked up there now. I am probably going to add trim to the top or along the sides of the cutains to add a little umph! to them. These curtains are really well made and the fabric came from Calico Corners. The girl I am buying them from says that she paid $800 for all 4 and she is wanting $150 for them. I think it's such a bargain and I really want them to work! LOL I've also included pics of the rest of my kitchen........

Well will the curtains be custom or readymade? That might help you decide. While some like a rod under the ceiling, I'm not a fan of seeing all that wall space between the top of the window and the rod. So, there is no correct answer, it's a matter of preference or necessity. It should be at least 4" above the window/molding if possible and can go all the way up to the ceiling, or anywhere in between.

A photo from further back would help but you would need two length of curtain, a fixed set to hang under the bulkhead, then the balance sized to fit up by the ceiling (hospital track?) The will never stack back all the way to the wall as the section under the bulkhead would be decorative only

I would hang the one on the left higher. They don’t have to be the same height … it’s a very charming look with your type of ceilings to do them differently. Lovely wall color!