For most visitors to India, Panaji is simply a busy bus terminal, offering connections between India's southern cities and the beautiful beaches of Goa. However, this most sedate of state capitals has plenty to offer tourists, and should rightly have a day or two devoted to it on any Indian travel itinerary. Situated on the southern banks of the Mandovi River, Panaji only became the capital of Goa in 1843, after the harbour at Old Goa silted up and disease had driven its inhabitants out. The best way to explore the town is on foot, wandering around the old cobbled alleyways, colonial villas, red-roofed houses, taverns and cafes, all of which has the look and feel of a small Portuguese town. There are some wonderful old government buildings, dating back to before colonisation, and some elegant Catholic churches. Most memorable is the Church of the Immaculate Conception: built in 1541, it's topped with a huge bell that sits between two delicate Baroque-style towers, and has been declared a UNESCO World Heritage Site. Panaji is a delightful place to explore and has an extremely laid-back atmosphere and small town feel unusual for a state capital.