You can get IC rated shallow cans from Halo in both new construction and remodel design. See the link below. With the nonIC cans, you need to leave space on all sides. But why do you want to poke holes in the ceiling and in the insulation to install a heat producing fixture that will pull conditioned air from the room? Here is a link that might be useful: Shallow cans

Thanks for responding. So you think I should just disconnect the thermocouple? I thought that might be an option, but I figured I might as well leave them in there as a safety precaution, even if they're not that necessary. Does this make sense? Do you have any insight into the wiring? thanks again

You can be creative with the building department regarding some permits. As long as they don't know your real intent.. It's not uncommon to have water and electricity, or even a bathroom in a "detached workshop". What is your plan for heat? What is the climate? You don't want plumbing on outside walls. Will you have a dedicated circuit panel for the "detached workshop"? Get electrical, and plumbing all roughed in. Get an inspection. Good with the City, and then finish your detached workshop into the apartment. What you want to avoid is going through all this work, the city getting tipped off and having zero permits for anything. Then there's a good chance they'll make you tear the walls open to inspect after the fact. Also, an oven is what makes a space into an apartment. Building and planning departments get REALLY hung up on an oven in more than one room. So you would not want any indication given by the electrical that an oven is going in. That wouldn't be wired in until after inspection. I understand your position though, the less the city knows the better. I understand it quite well.

I probably will keep the 1 floor lamp I currently have. I chose the recessed because I wouldn’t have to clean/maintain it as much as a chandelier. In the adjacent kitchen, recessed lighting is also going to be put in. In the second living room there is already recessed lighting. These were here when we purchased the house. What are some other suggestions to decorate a high ceiling?