Yes you can do that around the windows, and there would be no need to detail a a vertical DPC to prevent water ingress to the wall in your case.
However at the head of the frame, unless you detail a proper head drip and tray (and ventilation gap), there is the chance of water resting on the head timber and running back to the wall or sideways or otherwise causing undesirable staining and premature rot.
For the sides of the opening, the cladding should not butt against the jamb timber but a slight 5-10mm gap left. This is to prevent water soaking in to the end grain by capillary action and causing ugly water staining, and allowing the end grain to dry off quickly. Incidentally, make sure you treat the end grain of all cladding and timber well to prevent this staining occurring on any cut end.
You should really avoid having joints in the cladding, and plan it using single lengths. Cedar is vey stable lengthways, so whether its butt jointed or mitred wont matter too much, but the issue is one of anaesthetics and potential end grain staining which will really stand out.
One other tip, if you are having 50mm external corner pieces (or any vertical timbers really) don't have flat, square cuts on the bottom as this causes the ends to hold water and stain and rot. Either angle the bottom with a single angle cut or four-sided cuts, or in the case of 50mm square timber, you could drill out the centre with a hinge cutter or suchlike and this creates a drip around the edges but preserves the appearance of a square bottom. Remember to treat the end thoroughly - I tend to dip the ends in preservative or end grain treatment and not just rely on the oil coating.