This is an UNESCO World Heritage Site. Bhaktapur is located about 15-16 kms outside Kathmandu. It is one of the few places in Nepal which does not accept Indian Rs. 100 currency (rs 500 and rs 1000 denominations are banned in Nepal but rs 100 is allowed almost everywhere).
The place has a lot of temples, each exquisitely carved and decorated. It is prudent to take a guide to learn about each of these temples and palaces and the history of the area. In December 2013, you could get a guide for around Rs. 300.
As you enter from the main gate, on the left you will see the National Art Museum, then the golden gate, which serves as the entrance to the Taleju temple complex and the royal bath, and then the palace with 55 windows. On the right there are about 6-7 beautiful temples in a row.
A little bit farther through a lane, you will reach the Taumadhi square with 3 temples, one of which is the magnificent 5 storied Nyataponla Temple. The whole temple is adorned with beautiful carvings and the staircase is guarded by huge statues of mythical and real animals. The pagoda like Bhairav temple is also there.
Within walking distance are the Dattatreya temple and the Potter's Square. In the latter, you can still see the potters creating earthenware vessels using the thousands of years old techniques of potters wheels and ovens.
To check out everything properly, you need about 4 hrs, but it is worth every second and every rupee.
As you enter through the main gate, the Tourist Information center will fall on your left; it also has the restroom/lavatory.
This area is also famous for a dessert made of yoghurt and honey. It is available in many places and is quite tasty. There are many shops selling handicrafts, thankas, Tibetan and Nepali jewellery, the famous Gurkha daggers (kukris) and woolens. Everything is cheaper here than in Kathmandu. I bought a pair of woolen shoes (for use inside rooms during winter) and a woolen hat for extremely reasonable prices and both are quite good as far as providing warmth is concerned.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC.