Here’s my take on the OP.
In the Spring of 1941, high level meetings are held in Germany and the decision is made to postpone plans to attack the Soviet Union and the current state of wary neutrality is maintained. With the new “England First” policy in effect, advocates of the Mediterranean policy are able to win their arguments. Gibraltor and Malta fall to airborne and marine assaults and the Axis troops in Africa start receiving significant reinforcements. Egypt falls and the Germans press on into Palestine, Syria, Jordan, Arabia, and Iraq (in many cases with local support). Meanwhile, without the strain of the Eastern front, Germany is able to devote resources to other neglected military areas such as the navy, rocket forces, jets, and strategic bombers.
By October, Britain, faced with slow strangulation by submarines, aerial bombardment, and a long series of defeats on land, has had enough. Churchill is ousted and the new Halifax government opens armistice talks with Berlin. The resulting peace is not unbearable; the UK remains unoccupied and free but has to recognize German superiority over the rest of Europe. The neutrals of Europe see which way the wind is blowing and Spain, Sweden, Switzerland, Turkey, and Russia all accomodate their foreign policies accordingly.
In the United States, there has been a prolonged debate between the interventionist and isolationist factions in the government. With the British collapse and European peace, the isolationists win the day and their victory is reflected in the November congressional elections. But there victory is short lived when the Japanese attack Pearl Harbor a month later and then occupy the Philipines, Malaysia, and the East Indies. Britain having just emerged from one war has no heart for another. Troops and ships are sent to India, Burma, and Australia but the United States is told that they will only be used to defend against further attacks. Japan receives even less help from their supposed ally; the Germans tell them that as far as they’re concerned Japan has started its own war and should not expect any direct support from the Reich.
With the passage of a year, the prospect of a strike east is against raised in Berlin. This time, despite the reforms and rebuilding of the Red Army, the prospects are better; there is no second front, Germany has secured its own oil supply in the Middle East, the United States is distracted in the Pacific, and the armed forces have had several months to rest and refit. Early one May morning in 1942, over a million soldiers smash their way across the Soviet frontier (including the borders of Finland and Turkey) in a campaign that will not end until Moscow falls five months later (along with the second and third largest Soviet cities of Leningrad and Kiev). The Soviet government is able to evacuate to Kuibyshev and continue the fight but there will be no foreign support this time. The Wehrmacht’s 1943 Summer offensive sweeps through southern Russia and the Soviets are forced to evacuate again to Magnitogorsk. Stalin himself does not make this trip. Having lost confidence in his leadership it is decided by others that he can best serve the Motherland by dying in combat at the front. The subsequent ruling trioka of Beria, Molotov, and Zhukov negotiate a grim peace that cedes control of everything east of the Urals.
The Japanese fare even worse. With no European front to compete with, the Pacific war receives the full strength of America. The Japanese conquest is stopped in 1942 when American code-breaking enables the USN to ambush the Japanese attack on Panama. 1943 sees the Japanese conquests liberated one by one as the American armed forces reach their full strength. In June of 1944, American troops bring the war to Japan with the invasion of Kyushu. Six more months of bitter fighting across the home islands are required, however, before Japan’s final surrender.
The Germans spend 1944 mopping up resistance forces in their conquered lands, but by New Year’s Day 1945, the world is officially at peace (with the exception of the Indian civil war which breaks out in 1944 and doesn’t end until Subras Bose’s victory in 1949 and the evacuation of the Nehru government to Ceylon). But the reality is a cold war between the two superpowers of the United States and the German Reich. The Americans win the race to build the first atom bomb in 1947 but the threat of retaliation by German jet bombers and rockets (as well as the first German a-bombs which appear in 1950) keep the uneasy peace.