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By Sarah Garland

Just two years ago, the restaurants and shops in this colonial Mexican city were closed off to outsiders after protesters and soldiers briefly turned it into a battleground. Now, peace has returned, and so have the tourists.

One of the most diverse places in Mexico, the city and its surroundings are a treasure trove of indigenous crafts and a destination for history buffs seeking a firsthand encounter with ancient civilizations. But one of the main reasons to go is the food.

VISIT the capital of the "cloud people" -- the ruins of Monte Albán on a mountain over the city. Look down over the valley from atop pyramids and explore fields where the ancient city’s inhabitants once played a mystical ball game (monte-alban.com).

EAT mole, the rich chocolate and chili sauce that is the region's signature dish, in the tiny dining room of Maria Bonita (52-951-516-7233). Buy some at the Benito Juarez Market to take home.

SHOP for whimsical wooden sculptures known as alebrijes that are inspired by the artists' dreams, and black clay pottery from nearby villages along Alcalá, a pedestrian street lined with galleries and cafés.

SAMPLE delicate shaved ice in flavors like rose, tequila and burnt milk sold by vendors in the shady plaza next to one of the city's many stunning churches, La Soledad.

LISTEN to live music and sip smoky shots of mezcal, liquor made from cactus, at outdoor cafés in the city's main plaza, the Zócalo, or grab a table in the balcony of El Asador Vasco overlooking the scene (asadorvasco.com).

COOK some of the Oaxaca’s famous dishes yourself at one of several new cooking schools that have sprouted up around the city. At La Casa de los Sabores, the chef will share family recipes handed down for generations (laolla.com.mx). At the Casa Sagrada in the village of Teotitlan del Valle, on the outskirts of the city, take a cooking lesson and then learn how to distill mezcal to wash down the meal (casasagrada.com).

EXPLORE the villages around the city, each with a unique craft to offer. Visit the town of belts, Santo Tomás Jalieza, or buy brightly dyed wool rugs from artisans in Teotitlan (teotitlan.com).

CELEBRATE with the locals during one of several annual festivals that transform the city into one big party. The Guelaguetza brings traditional dancers from around the state to perform during July. Elaborate altars decorated with flowers and filled with food line city streets in preparation for the Day of the Dead on November 2. At Christmastime, see displays of small sculptures carved out of radishes on the Noche de los Rábanos, December 23 (oaxacainfo.com).

SEE the works of contemporary Oaxacan artists in an airy colonial building downtown (museomaco.com). An eclectic collection of pre-colonial art from around the country gathered by Mexican artist Rufino Tamayo is housed in another museum nearby.

STAY at the Hotel Las Golondrinas, a quiet retreat in a colonial style building that makes the bustle of the lively city outside seem miles away. The rooms open into a courtyard bursting with flowers, and the massage center beckons those exhausted after a long day of eating (hotellasgolondrinas.com.mx).

RELAX in the hands of indigenous healers at a traditional spa known as a temazcal, where treatments include an herb-infused sauna (lasbugambilias.com/temazcal.html).

TASTE chapulines, the crunchy roasted grasshoppers that legend says will bring tourists back to Oaxaca for a second visit. They can be found at stands in the central market, at the bottom of mezcal shot glasses in downtown cantinas and even in upscale restaurants like El Refectorio in the Camino Real Oaxaca hotel (caminoreal.com).