Buy some flowers at the flower market on Calle Sucre across from the new cathedral. Continue on about a block from there to get to the clothing and artesan market where one can also find knit crafts from Otavalo. Lovely handmade ruanas, sweaters, hats, mittens, and finger puppets are also available here.
Inside the yellow CemuArt building across from the police station at the market other artesans have booths with beautiful embroidery, metal, wood and leather work, Panama hats, musical instruments, knit goods, jewelry and other handicrafts.