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Discover old-world haciendas, native crafts and south-of-the-border flavors in the colonial city of San Miguel de Allende.

Take one step into its 400-year-old town square, and you'll see right away why San Miguel de Allende, Mexico's most famous colonial city, was declared a national monument by the Mexican government. Narrow cobblestone streets pass through centuries-old neighborhoods and alongside 17th- and 18th-century houses with the occasional pack mule tied up outside the colorful doors. There are no Starbucks, McDonald's, stoplights or neon signs. Here, church bells announce the start of the day and most stores close during the siesta, which takes place from 2 p.m. to 4 p.m. It's no wonder this town has, for about the past 50 years, been a mecca for American artists and writers, who come for the bohemian lifestyle, the lovely colonial architecture and the clean mountain air. Sure, beaches probably come to mind when you think of a honeymoon destination in Mexico, but that doesn't mean they're all this country has to offer vacationers. Read on for where to stay, eat, shop and play in one of Mexico's most historic towns.

Sleep Well

Past Perfect The six-room Casa Schuck is a classic example of an old-world hacienda. It's an adobe structure with a traditional ceramic-tile roof and its guest rooms are built around a courtyard that's filled with bougainvillea flowers and jacaranda trees. (There's even a fountain.) The rooms themselves are old-fashioned as well: Each has colorful walls and colonial-style furnishings (think elegant armchairs, four-poster mahogany beds and embroidered Mexican bedcovers), and you won't find TVs or phones. Request the Rose Room ($174 per night), which has a king-size canopy bed, a fireplace and—best of all—a private rooftop patio with views of the city and the mountains (Bajada de la Garita, #3; casaschuck.com).

Now and ZenYou never know what's behind the colorful doors of San Miguel—even the simplest ones open to reveal spacious houses and gorgeous courtyards. Such is the case with the eight-room Hotel Casa Linda. It's just a block off the bustling town square, but enter the lush terraced gardens and you'll feel instantly calm—as you will when you check out the heated lap pool with its on-deck fireplace or the large whirlpool tub and the in-house spa. Looking for privacy? Book the Rincon de Indios suite, which has a living room with a fireplace, a dining area and a private terrace (Mesones #101; hotelcasalinda.com).

Current Event The town's newest hotel, the five-room Dos Casas, is also the most modern. Fans of, say, W Hotels will feel right at home with its cool, minimalist style. Dos Casas is decorated in whites and beiges, with platform beds, tile floors laid with jute rugs and not a tchotchke in sight. While you can't escape the ubiquitous four-poster bed in Mexico's hotel rooms, the ones at Dos Casas are simple—and seductively draped with billowing gauze. For couples who are more into now than then, Dos Casas is the only game in town (Quebrada #101; livingdoscasas.com).

Good Eats

Sunrise Service Locals come to El Correo in the morning to start their day with traditional dishes, particularly the house special, chilaquiles, a heaping dish of tortilla chips topped with fried eggs and cream sauce. If you're looking for something lighter, order a plate of fruit salad. It's so fresh, you can smell it from across the room, and the slices come arranged in a smiley face, with a banana or cantaloupe mouth, strawberries for eyes, and a pineapple nose (011-52-415-152-0151).

Secret Location As you drive on a back road that seems to lead nowhere, you may wonder why anyone bothers trying to find Olé Olé—but once you step inside, you'll know. The restaurant is filled with bullfighting memorabilia, from bullheads and posters to matador outfits and decorative spears. The fajitas (choose from chicken, shrimp, beef and, for the brave, ostrich) are perfect for sharing, and the restaurant serves local Sol and Indio beers, which are a welcome change from the usual Corona or Negra Modelo.

Neat Treat Is it possible that the best hamburgers in the free world are in San Miguel? We think so. They're made by a guy in a cart and, at a mere $1.70 a pop, we could eat them every day. These ingenious burgers are topped with ham, bacon, cheese, sautéed onions and jalapeños, and served on a fantastic, fluffy bun. What the cart lacks in ambience it makes up for in location—right in the town square, where locals come for their evening strolls. Buy two burgers, have a seat on a bench and take a juicy bite heavenly.

Silver Star Locals have been going to San Miguel's oldest restaurant, Bugambilia, since it opened more than 50 years ago, and it's still the best place to sample traditional Mexican cuisine. Don't leave without trying the fantastic house special, chiles en nogada—poblano chiles stuffed with ground beef, almonds, pecans and raisins, and topped with a rich cream sauce and pomegranate seeds. It incorporates all the colors of the Mexican flag, so it's no surprise it's the national dish.

Smart Shopping

Craft Heaven The blocks around the town square are lined with shops filled with Mexican crafts, fashions and textiles, and you'll want to explore the neighborhood's many courtyards to see the little boutiques hidden inside. One of our favorites: Casa Maxwell, where you'll find traditional Mexican crafts. Look for coffee cups made of chunky pottery. (Canal 14, Umaran 3).

Home Arts Casas Coloniales, a favorite with interior designers, sells embroidered hand towels and exquisite bedspreads, as well as gigantic tassels in bright colors (Canal #36).

Fun Factor

Hoofing It Horseback riding is one of the best ways to see the area's beautiful ruins. Book Coyote Canyon Adventures' half-day guided trip into the cactus-filled Coyote Canyon, and you'll see two recently discovered Aztec pyramids that are now being excavated. While the going isn't always smooth (you'll cross gorges and trot alongside cliffs), there's a big reward at the bottom of the canyon. There you'll find a mountain-fed stream, where you can stop for a swim, just as folks used to do in the old days (coyotecanyonadventures.com).

Bubble Bath There are several places in the area to enjoy natural hot springs, but La Gruta is the best. This gem features three pools, with built-in seats and a range of temperatures. There's also a long tunnel leading to a cave that's home to a shower of cascading water.