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My first Mexican vacation (Mexico City)

I hope that you can give me some suggestions for my family's first vacation as full time residents of Mexico ( almost one year). We have chosen Taxco (as it is not too far away and seems to be picturesque and charming ( at least according to the world wide web). I sometimes think hotel reviews are written by hotel employees and thus not to be fully trusted. Since this is our first 'vacation' we want to enjoy it as much as possible. Please can you give me some recommendations for hotels (price not an issue, saving is important, but for our first vacation here we want to enjoy where we stay), restaurants and things to do. Thanks so much for any help and suggestions you can offer.