Just a few miles from Kirkby Lonsdale lies Britain’s biggest cave network – 60 miles of caverns and natural tunnels crossing the Yorkshire, Lancashire and Cumbrian borders.

But beneath the historic market town’s cobbled streets there’s another underground world – made entirely of chocolate.

We discovered the Enchanted Chocolate Mine browsing around Chocolat, one of the independent shops lining Kirkby Lonsdale’s streets. Taking a flight of stone steps down to what we thought was a cellar, we entered a delightful ‘mine’ inhabited by a team of hard-working fairies. A wishing well waterfall is named Hook Nose Falls in a nod to Kirkby Lonsdale’s links with Peter Pan. JM Barrie was a regular visitor, and is said to have based characters on the vicar’s children.

It’s not the only literary link to the area. Nearby Cowan Bridge was where the Bronte sisters went to school in the 1820s – in Jane Eyre it became Lowood, and Kirkby Lonsdale was Lowtown.

Nestled in the Lune Valley, where the Yorkshire Dales meets the Lake District, the town is a mix of elegant Georgian buildings and stone cottages hugging cobbled courtyards and narrow alleyways. Traditional butchers, pretty tea rooms and country pubs stand alongside stylish boutiques and quirky gift shops.

The Sun Inn stands on a street so narrow you can practically touch the buildings on the other side. Owners Mark and Lucy Fuller came to Kirkby Lonsdale to order cheese for their wedding and fell in the love with it.

Both from a hotel background, the couple bought the inn, which dates back to 1630, and transformed it into a five-star inn and restaurant.

Awarded an AA rosette for its menus, the inn’s mantra is “fresh, local and seasonal”. A British pub take on tapas – Meats, Fishes, Loaves and Dishes – is offered alongside pub favourites, while the dinner menu has more of a restaurant feel.

Regular Posh Nosher and wine tasting evenings, with themes such as Wild About Game and A Grand Tour Of Europe, offer a chance to sample good food and meet wine specialists in an informal setting.

With oak floors and roaring fires, the 17th century inn blends historic charm with contemporary chic.

Our room, which had a rustic feel, with stone walling and overhead beams, overlooked the bustling street. Nice touches included Cumbrian biscuits with the coffee and tea, and indulgent toiletries.

We explored the town, visiting shops like Churchmouse Cheeses, with an array of cheeses, olives, chutneys and biscuits, before dinner in the inn’s brasserie restaurant.

I had tasty, nourishing beetroot gravadlax with horseradish cream, followed by melt-in-the-mouth lemon sole with new potatoes, sauteed greens and caper butter. My partner went for slow-roasted shoulder of Lune Valley lamb with roast garlic mash, root vegetables and braised cabbage, and for dessert we indulged in white chocolate, raspberry and vanilla mousse, with pistachio tuille and marinated raspberries, and lemon mess with citrus meringue and Champagne sorbet.

Next morning we attempted to work it all off with a walk. Behind the inn, just outside St Mary’s churchyard, we came across a view of the Lune Valley described by Victorian art critic John Ruskin as “the loveliest in England”.

Known as Ruskin’s View, and immortalised in a painting by JMW Turner, it’s a sweeping vista of rolling woodland and shimmering waters, and even on an overcast March morning it was impressive.

We followed the river to the 14th century Devil’s Bridge, then headed into town where it was market day.

Later we drove to Sedbergh, about ten miles north at the foot of Howgill Fells. Not for nothing is it designated ‘England’s Book Town’ – the place is teeming with bookshops. We could’ve spent all day in Westwood Books, a converted cinema with a huge range of books sprawled across two floors. With sofas dotted about, and tea and coffee available, it’s a place you can lose yourself in for a couple of hours.

Back at the Sun Inn we relaxed in the bar with a latte, leafing through the books we’d bought.

Our day ended with dinner in the restaurant – delicious, filling wild mushroom, parmesan and tarragon linguine and beef brisket bourguignon with celeraic mash and bacon, followed by rhubarb and apple crumble.

Kirkby Lonsdale is well positioned for both Cumbria and the Dales. England’s highest waterfall, Cautley Spout, is just a few miles away, as is the country’s biggest showcave, White Scar Cave. Venture further into the Lake District and you’ll find Wordsworth’s home at Rydal Mount.

After checking out, we headed to nearby Carnforth, where Brief Encounter was filmed. It was quite a wrench to leave – taking a last look at the Sun Inn, I had a Celia Johnson moment. Just something in my eye...

FACTFILE:

The Sun Inn is on Market Street, Kirkby Lonsdale. Ring (01524) 271965 or visit sun-inn.info.

Take the A65 past Skipton, following signs for Kirkby Lonsdale.

For more about Sedbergh or other Cumbrian attractions, go to visitcumbria.com.