There's something murky about 'Auld Reekie', as Edinburgh is sometimes known.

The city has a history of crime, plague and mischief, and when the 'haar' (the fog rolling in from the Forth) billows across the volcanic crags of Arthur's Seat and the Castle summit, it appears a dour place - despite its fame as a comedy festival showcase.

Perhaps that's why its shops, hotels and bars glint with lights and decorations at the moment - and all the more heartening now, because of the winter gloom.

With Edinburgh, you get two cities for the price of one: the Old Town is a patchwork of alleys, bridges and gables, while the New Town boasts boulevards, statues and Georgian finery.

I found its compact size meant it was easy to stroll among the key sites, but the public transport system (mostly still in the hands of the council) is excellent. A single journey costs £1 and all-day tickets are a mere £2.30.

An Edinburgh Pass offers free entry to 32 key attractions. It costs from £20 and includes return travel from the airport, unlimited bus travel, maps, a 100-page guidebook and discounts at shops and restaurants. How's that for value?

Dubbed 'The Athens of the North' (though the hugely expensive Scottish Parliament was designed by a man from Barcelona), Edinburgh sports an array of galleries and museums.

Don't be put off by the Greek-style columns and austere architecture, as there's lots to enjoy. The highlights in December and early January for art lovers include an exhibition by the Spanish painter Goya, a retrospective by the veteran photojournalist Harry Benson and scenes of Venice by the Italian artist Canaletto. The Castle - a World Heritage site - dominates the skyline. You can gaze at the Scottish crown jewels here, and wander with an audioguide, learning about past sieges or how prisoners escaped from the fortress (apparently, this wasn't too difficult), but I enjoyed gazing from the ramparts best of all.

The other place from which to get a panoramic view is the ferris wheel at Princes Street Gardens - although I felt it was too gusty for me to clamber aboard.

'Fortescue Monroe', a guide from Mercat Tours in a tri-cornered hat and robe, relished telling us about the seedy murderers Hare and Burke (who, appropriately, have a lap-dancing club named after them); councillor Deacon Brodie's penchant for burglary, and fiery Protestant Reformer John Knox - now buried under a car park. We were grateful for the fire in the cellar where we'd ended up after the two-hour trek around the city's nooks and crannies.

But a snootier place to get the circulation going proved to be the Balmoral Hotel.

It wasn't cheap, but afternoon tea - including Champagne - in the swanky building where actor Tom Hanks lodged while filming The Da Vinci Code left me feeling smug as well as stuffed.

Incidentally, shopaholics should stash a few extra tenners in their wallets. Old Town has plenty of independent stores such as Demijohn, which stocks all manner of warming tipples, from lemon-scented gin to elderberry wine.

The ripe aroma of fine cheese should lead passersby to IJ Mellis, while you can guess what's on sale at the Whisky Shop.

Nearby, Armstrongs boasts quirky clothing, including Victorian battledress. Some poky, but charming, bookstores are in the Grassmarket. But it's a mistake to linger in the usual tourist haunts. I headed for the port of Leith, two miles away, where the Royal Yacht Britannia is moored.

Every few minutes, the number 22 bus leaves Princes Street for the docks. The Shore area is particularly quaint.

Leith is where much of the film Trainspotting was set, and though more respectable now, a couple of tower blocks serve as a reminder that there's more to Edinburgh than shortbread and tartan teddy bears.

Festive events

THE city switched on its festive lights on November 23, so few shops are without baubles and tinsel, but Jenners is perhaps the most ostentatious - a 43ft Christmas tree stands in the middle of the bustling department store.

Obviously, Hogmanay is the highlight of the winter calendar. And as such, a vast bonfire will be lit and a 40ft Viking longboat torched on December 29.

On New Year's Eve, the Royal Bank Street Party usually attracts about 100,000 revellers to watch eight tonnes of fireworks burst across the city.

Food and drink

Edinburgh claims to have more eateries per head of population than anywhere else in the UK.

Try Oloroso, The Grain Store, Tower (which offers views of St Giles' Cathedral and the Castle), Atrium, Tempus, The Living Room or Haldane's for contemporary Caledonian cuisine. Many menus feature game such as venison, pigeon or hare, as well as Scotch beef and a plethora of seafood.

For those on a tighter budget, you won't have to survive on deep-fried Mars bars. Watch out for the odd bargain - for instance, in Spittal Street, Footlights has a free buffet on Fridays.

The Scots famously enjoy a dram, so it's easy to warm the cockles. If you're near the castle, slake your thirst at Cafe Hub, which boasts a selection of beers from across Scotland.

If what might be termed 'McBling' - chrome, chandeliers and fairy lights - is your style, pop into Le Monde or The Dome, both in George Street, which boasts a line of well-heeled bars and nightclubs, some of them former banks.

VisitScotland has also shaken and stirred a seasonal cocktail trail, which starts in Harvey Nichols.

Getting there

Paul Stammers flew with British Airways from Heathrow and stayed at The George Hotel (www.edinburghgeorgehotel.co.uk) Flying from Stansted or Heathrow takes 50-60 minutes. Shuttle buses as well as taxis run from the airport Trains arrive at Waverley Station, in the heart of the city See www.visitscotland.com, www.edinburghschristmas.com or www.edinburghshogmanay.com