Take a private guided city tour of Granada, visiting its colonial churches, strolling down the narrow streets and passing graceful colonial houses. Many of the places of interest are within the vicinity of the main square. These include the beautiful, baroque La Merced church, the Casa de Los Tres Mundos - now a cultural centre for local musicians and dancers; and the 16th-century San Francisco convent.

Granada is on the shores of Lake Nicaragua, the second largest body of freshwater in the Americas. It appears to the observer as an inland sea, with silky silver waves tipped by white horses when the wind blows.  Embark on a small launch for a relaxing boat ride in the sheltered waters around the peaceful Isletas, hundreds of tiny, bright green and thickly forested islands created by eruptions from the bulky Mombacho volcano which looms over the region. Depending on the weather and time of day, you may observe prolific bird life. Small fishing communities live here and some islands host impressive weekend retreats owned by wealthy Nicaraguans.

Continuing by road to the summit of the smoking cone of the Masaya volcano. Climb a clear path to the Santiago crater, active since 1946. You can look down into the crater, where swirling sulphurous vapour conceals any fiery embers. There are wide-ranging views over the countryside and the lakes. On the way back to Granada, stop off at the Masaya arts and crafts market specialising in traditional ceramics and hammocks.

Transfer to Managua airport and fly to San Carlos (1hr) on the south-eastern shores of Lake Nicaragua. The liveliest part of this quiet and somewhat ramshackle town is down by the pier: ferries and private launches jostle for space with fishing boats. The roads from the north end here: to travel east to the settlements along Rio San Juan you have to take a boat. (New roads are opening all the time including, in 2014, one to Costa Rica which will cross the river close to El Castillo: some of the remote atmosphere in those vehicle-free towns will surely be reduced as a result).

You’ll embark on a 90min river journey by river. The banks are initially farmed, with fields of maize and grazing cattle punctuated by small jetties and rural homes. However, as you travel downstream, the vegetation gradually becomes dominated by natural tropical forest.  There’s plenty of wildlife to be seen: scores of snowy ibis alight upon the branches overhanging the water and you may spot monkeys swinging through the taller trees or a caiman lazing on naked logs.

You turn a bend in the river to be greeted by a spectacular and unexpected sight: on a rare hilltop a vast, stone-built Spanish fortress glowering over a series of white-water rapids and the squat, wooden stilted houses of the quirky little port El Castillo.

In the evening, go searching for caimans by boat under the moonlight, accompanied only by a specialist guide. As you glide for 90mins through the darkness, a journey orchestrated by the nocturnal sounds of the rainforest, the guide will be using a spotlight to reflect the beady red eye of caimans (alligators) at repose in the tropical vegetation along the water's edge.

Just 3km downstream from El Castillo you reach the Indio - Maíz Biosphere Reserve, dedicated to the preservation and research of its biological diversity.  Set off with your guide on the 2km Bartola Trail, a clear path which winds its way through the forest, which is replete with tall, thick-waisted trees overhanging, outsized tropical plants with huge waxy leaves, and ferns sheltering poison-dart frogs not much larger than a fingernail.

You may be lucky and spot a family of monkeys watching you from the safety of a branch; or a battalion of leaf-cutter ants may cross your path. If the weather and river levels allow you can kayak along the San Juan or Bartola river spotting sunbathing turtles and caimans.

El Castillo fortress, the oldest building in Nicaragua, dating back to 1673, was founded by the Spanish to protect the affluent trading city of Granada from what they considered to be European pirates. This location was chosen because the fort could be constructed on the top of a relatively high hill, from which the soldiers could have a 360 degree view of the jungle around and the river approaches: the fort was also protected by the presence of the rapids below. You will be escorted on a tour of the fort, with its silent cannons; you can enjoy the expansive views with a more pacific intent.  Illustrated boards relate the story, including the capture and brief tenure of the fort by the British Navy led by Horatio Nelson (aged 22).

Return by boat to San Carlos, travel by road to Rivas, travelling on a new but still little-used road passing through rolling cattle country and small cowboy towns (5hrs)  Embark a ferry to take you across the lake to Ometepe Island (1hr).The relaxed, tranquil island rises majestically from Lake Nicaragua. It is dominated by twin conical volcanoes, Concepción and Maderas. The island is partially blanketed with lush jungle vegetation populated by monkeys and a plethora of bird species.

The island is also peppered with citrus, banana, watermelon, avocado and cacao plantations - thanks to the island's fertile volcanic soil. Life here has been unchanging for decades if not centuries, in spite of the upheavals caused by revolution and civil war elsewhere. Only one road has been fully paved, and this, along with the fact that it is only reached by boat, has ensured the enduring feeling of remoteness. Your hotel overlooks the loveliest beach on the islands, fringed by waving palms.

Take the ferry back to San Jorge and proceed to the city León. León was founded in 1524 and moved to its present site after being devastated by an earthquake in 1610. Formerly Nicaragua's capital, it has retained much of its ecclesiastical and intellectual heritage. Many of the building walls are daubed with colourful Sandinista and anti-American murals and riddled with bullet holes - a poignant symbol of Nicaragua's turbulent past.

Suchitoto is renowned for its strong sense of identity and even has its own anthem, flag and coat of arms. During the brutal civil war it was badly hit, but fortunately, since the peace accord, many reconstruction works have been carried out. In the native Natuatl tongue, Suchitoto means 'place of birds and flowers' which will become clear on arrival.

On your leisurely 2-3hr guided walking tour you visiting the principal attractions such as Santa Lucía Church, the Arte Para la Paz (Art for Peace) Museum and Las Ruinas Theatre, which are all set amid the white cobblestone roads, quaint balconies and adobe houses.