The charming colonial town of Paraty is a must-see destination in Brazil...
Luxurious boutique hotel, Pousada Da Ouro, (http://pousadaouro.com.br/eng/home.html) is the perfect transition from rough and tumble Rio to languid luxury in Paraty. The grounds and staff effortlessly take care of anything and everything you could possibly desire.
Boutiques... Stolling along the cobblestones, you'll find the most amazing boutiques with tasteful (i.e. not cheap and tacky) handicrafts, cozy cafes, and candlelit seafood restaurants. Without a doubt, the best MOQUECA DE CAMARAO around is at ARPOADOR restaurant. If you don't know what this is, then you are in for a treat. Just order it. You'll thank me.
And lastly, Cachaca. If you've had a Caipirinha, then you're already familiar with this sweet, seductive substance, whether you know it or not. And in Paraty, you have to stop at the Cachaçaria Cana Caiana for what is arguably the world's biggest and best collection of cachaca. After sampling the goods, just remember to ask for a late checkout:)