Begging you for Safed Info & Reco

Have you spent any time in Safed (also spelled Safed, Zefat, Tsfat, Zfat, Safad, Safes, Safet, Tzfat, etc.)? If so, I’m looking for a recommendation on somewhere to stay. I plan on being there for a couple nights. I want to see the sites, but I also want to write.

Where did you stay and what would you recommend I do?

UPDATE: Wowee, zowee I got some great suggestions I sent an email to Ascent of Safed to get a reservation there for Monday and Tuesday nights. It is more my budget than the beautiful hotel that Phylis suggested.