Traveling around Dali is actually quite straightforward: just loop around Erhai.
Cai Village is right at the southern edge of the Ancient city, bordering Erhai. Usually, people choose to stay there for one night; even the sea-view rooms with floor-to-ceiling windows or balconies aren't expensive. Clockwise from Cai Village around Erhai, you'll pass Xi Province, Twin Hall, Wase, Haidong, and Dali City District in turn, before circling back to the Ancient city.
This whole loop is about 130 kilometers.
As for the attractions around the Ancient city, like the 'Demigods and Semi-Devils' film studio—anyone who visits doesn't leave without feeling ripped off.
It's more convenient to travel now than before. You can rent long-range electric bikes in the Ancient city, which you can use to loop around Erhai, though it's a bit tiring. Twin Hall also has Qingju shared electric bicycles available—many of them, in fact. Riding along the coast is quite comfortable.
