I've been wanting to go there for quite some time, and really quite surprised that having grown up in this general region that I still hadn't been there. The mid-October weather was perfect, a slight chill in the air but the sun was warm.
We stayed at Shervani Hilltop, which is a really lovely place. It's a series of blocks so you get a sense of privacy and a non-hotel feel, instead of being a large block with a corridor down the center. There are gardens at many levels as you go up or down to your room, flowers everywhere and tastefully done up modern rooms. They have central heating as well, which made the nights very comfortable too, especially with little kids who refuse to stay covered up at night!
There really isn't much sightseeing to do in Nainital, and we didn't want to do the things that all other tourists do, like go up in the rickety cable car. So apart from a drive up to the Raj Bhavan, which is quite a majestic castle like building, we made our own agenda of cafes and walks and sailing at the Nainital Boat Club. It was the perfect way to spend a relaxed week with kids.