Jeffcrigler

I have a simple condition where a two story structure adjoins a one story structure, both with gable roofs.  The gable wall on the one story structure protrudes above the ceiling of the first floor to the middle of the second floor in the adjoining structure.  Thus the exterior wall appears on the interior of the first floor room above the ceiling.  Since I don't want flat ceilings... that's a problem.  I haven't figured out how to fix this.

Attached is a pdf and the plan.  Love to get a suggestion on how to do this.