I visited the old Portuguese town of Olinda in 2006 with our Brazilian daughter-in-law.  'Linda' means beautiful in Portuguese, which is very apt!  We stayed at the Pousada Quatro Cantos (more excellent cake!) and wandered round the old town and visited the richly decorated church and the market where we watched the lacemakers. We were delighted to discover that there was a festival during our stay and after watching the processions of children and musicians, we joined the locals dancing through the streets in the evening.