As far as a TL of events would go, this is what I see happening:
Leningrad surrenders in late January 1942, Soviet offensives to rescue it are hasty and fail, which then gives the Germans a chance to cut them off and wipe them out even better than IOTL due to holding the entire west bank of the Volkhov. As per OTL most of AG-North's last Panzer Corps, the XXXIX, which conducted the operation to clear out the west bank of the Volkhov in October along with the infantry I Corps is peeled off to help 16th army, but due to being far less damaged than IOTL without having to take and hold Tikhvin they are able to keep Demyansk's supply lines open (IOTL only 1 badly worn down motorized division was used, here it wouldn't be as worn down and the rest of the 4 division corps could be used to help 16th army due to not being needed to hold the Volkhov line, that's an foot infantry job) as well as help Kholm. Then they could withdraw their Panzer divisions to recoup in Estonia as per OTL. IOTL 8th Panzer was used to relieve Kholm, but without being as damaged at Tikhvin or being locked down in the North that could happen sooner with greater strength, avoiding the heavy losses that happened during that pocket battle.
During the Spring the mobile divisions of XXXIX Panzer Corps would recoup once Leningrad surrenders and frees up infantry to hold the lines they did historically and then probably get used to help hold Rzhev during the Summer battles and in the counteroffensives to firm up the lines around the salient. 3rd and 5th Mountain division never appear on the front of 18th army and instead go straight to Finland and participate in that big offensive to capture Karelia and Murmansk; that effort takes most of May and June and probably by July that wraps up once the July convoy to Murmansk is shattered by the Germans as per OTL. Freed up from that the mountain divisions get a rest and then probably get deployed to the Caucasus in September if they are ready. The SS Mountain division gets deployed to the Balkans with 7th SS division and probably goes on to commit similar atrocities there. 7th Flieger division probably does an air assault in the Kuban once it isn't needed around Leningrad. The veterans of Sevastopol probably are used for operations around Rzhev, first Operation Whirlwind in August and then in an effort with 9th army to cut off the Toropets salient's rail line with help out of Demyansk. Given that Demyansk never becomes a pocket ITTL and Kholm either never does too or is much more quickly saved, there is major savings of German troops and they are able to use their positions to lock down Soviet reserves so that 11th army can cut the rail line supplying the Soviets running through the Valdai Hills. XXXIX Panzer Corps can be spared ITTL to help in the Summer battles of Rzhev, which means 11th army and 9th army can focus on cutting off Kalinin Front, which probably culiminates some time around September.
In the meantime in the South extra forces freed up as a result of operations in the North (or never became casualties ITTL) plus greater Soviet weakness means Stalingrad falls early, perhaps in September even. In August due to freed up German aircraft from the north in July Operation Pedestal fails and then in September Malta surrenders due to lack of supplies. No impact on the fighting in Egypt, but it does free up Luftwaffe aircraft for more offensive missions in the Eastern Mediterranean and reduces supply use from constantly interdicting Malta. Novorossyisk falls completely, including Soviet positions overlooking the port, in September-October, but the port is wrecked. With more mountain troops the Germans are eventually able to take Tuapse too, but similarly wrecked due to the fighting and sabotage. Maykop is also sabotaged as per OTL. Grozny is bombed as per OTL and Abwehr missions similarly fail as per OTL. Stalin is desperate and demands a 2nd Front in France or will ask for a separate peace when Churchill visits in August, Malta falling also weakens Churchill's political position.
Allies settle on Operation Roundhammer in May 1943 instead of Operation Torch. All the landing craft and shipping is freed up due to the Murmansk LL route being shut off. Stalin is panicked by the Toropets salient being lost and most of Kalinin Front being chopped up in the pocket. That frees up a lot of German troops, so Rzhev is secured and Moscow now threatened more than any time since October 1941. The situation along the Volga is serious, but the Germans aren't advancing any more and the defeats around Moscow make Stalin focus on that area more than rolling the Germans back from Ukraine and the Caucasus. The Soviets focus their weakened offensive abilities on pushing the Germans back from the Volga and Voronezh in the Winter of 1942-43, but find that German reserves are a lot stronger than IOTL and their efforts are stymied, though they do damage the Romanian, Italian, and Hungarian armies. Stalin decides them to sit back and wait for the Wallies and 2nd Front.
In Africa Rommel is defeated and pushed back from Egypt to Benghazi, but ground troop reinforcements and now a bunch of extra Luftwaffe support due to Malta being taken mean Rommel rallies and is able to rally and cut up British pursuit forces and stabilize the line at Gazala. This is a temporary reprieve though as Monty builds up for another Operation Supercharge to break Rommel's line. This will take a lot longer due to the need to husband Allied forces for the Normandy invasion and extended British supply lines from Egypt. The next major push is scheduled for April 1943 to distract from the situation in France right before the invasion. German troops are stretched on all fronts, so when the Brits do attack they push Rommel right back to El Agheila after a heavy fight. Again a major pause in the fighting.
In France then in May 1943 the Allies invade, but the Germans have built up substantial reserves to counter it do to the Eastern Front bogging down for the time being .
I'll stop right there, because so much would be different it's tough to say what would happen at that point.