Nerja is about an hour away from Malaga. It is a traditional Spanish town with the famous Balcon de Europa, The caves, walks for all abilities, numerous tapas bars and excellent restaurants. Hidden beaches and the famous Burriana beach. Nerja can be quite hilly in places although the main area of town is flat.
Frigiliana is a mountain village not far from Nerja reached by the local bus. Beautiful whitewashed village with amazing views.
There are a few well known chain hotels and lots of private rental apartments and villas.
For the more adventurous there are companies that offer water sports, walking/hiking trips, horse riding and excursions to other towns.