The great part about this technique is that you can fabricate the panels in your garage or shop so that you don't totally besot your house with mess.
Step 1: Site Prep
Originally our hood pipe was hidden in a soffit. I removed this soffit and covered the hood with a removable three sided box and painted it the same color as the wall. The part against the ceiling and wall was finished with a white painted cove moulding.
Step 2: Gather Materials
Don't ever be mundane. You could get really nuts and use a welded wire mesh to make curved and humped designs for a chandelier or decorative wall hanging. Glue the tile to the mesh with adhesive and then once, dry apply a mortar or grout to the back to really grab and hold the tile.
I used 1x1 tumbled slate.
My backing is 1/4" plywood subflooring.
The adhesive I used was a water resistant construction adhesive. When in doubt use water resistant. You can also use thinset mortar on drywall and wood, but I usually stick to construction adhesive for these and leave thinset for concrete and concrete board.
You'll need something to spread the glue/thinset around. Here I used a small notched trowel.