Best situation-Soviets defeated. Or at least held of in the East to extent that a clear status-quo line has developed, and the East front is beggining to wind down into a ceasefire. The Wallies launch D-Day, but Germany then begins t osucceed in driving them back in a counter attack... once they have been pushed out of France, the Wallies(or more specifically, the Americas) realise nuking is the only solution. Thus, they nuke Germany, despite British protests, and the UK immediately declares a cease fire....resulting in a German victory, despite the US possesion of nukes, as the US realise their capacty for victory is gone. The ceasefire forces Germany to accept the establishment of a US backed Italy(minus Sud-Tirol), and also accept their Western puppets loss of all the colonies(with which the Americans are free to do as they wish). They do, however, regain their pre-WW1 colonies minus those of the Pacific. In the East, Germany secures the SSR's of Ukraine, Byelarus, and the Baltic, Finland regains its lost territory, and the Soviets pay minimal compensation.
The Scandinavian, Lowland and Finnish territories are then incorporated into the Greater Germanic Empire(Sweden and Finland see no alternative, and thus accept the status, which is little more then a formality plus trade rights...at least at first).
A great Nuclear race occurs between the USSR and Germany(though neither are awarfe of it, though they suspect it... which Germany wins by little more then a month(in 1950, as the USSR is devestated, Germany lost top scientists, and the US remained neutral. Also, the USSR spy discovering the nuclear method is butterflied away). However, as they excel in missile technology(leading the world), upon the discovery Moscow is nuked(killing Stalin and the Duma, who are meeting). They thus immediately, limiting Nuclear attacks largely to those of tactical importance, and reach the Urals quickly