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Let say Hitler dies in Jan 1942 and assume a much more logical noon-NAZI German government comes to power and the war in the field continues much the same. I know it is a big *IF* but bear with me.

Now when do you ask for terms and/or surrender?

Now with the NAZIs out, the Allies would probably be more flexible in their demands.

Here are some suggestions.

1) Try and make terms now. Most conquered territories would be lost, but you do not care about living space and at least Germany would be safe as you think to yourself that even if Germany wins it is not worth fighting. Note you will not last long after peace is made as either the Allies or many German people will want your head.
2) After Stalingrad when it is clear that Germany is in real trouble. By the way, this is when the Finns started to have doubts, so it is not illogical at this point.
3) After the battle of Kursk when it is quite clear that Germany cannot defeat Russia.
4) After D-Day as now, Germany can hope to make peace with the British and Americans and possibly avoid a Russian takeover of Eastern Europe.
5) After the battle of the Bulge, as it is now clear that the Americans and British cannot be stopped and driven back and there is no hope of defeating them and then using the resources to hold Russia.
6) 1945, German lines are collapsing, and the Allies are getting into Germany.
7) Fight to the end.
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