....head off for a mini break to Mudgee, NSW.

If you're heading from Sydney, less than two hours on from Katoomba, you'll reach Mudgee. Its aboriginal name means "a nest in the hills", and it fits.

There is an energy about the region, just three-plus hours by car from Sydney, and who knows, maybe it's because it is thick with displaced city-siders who have left the rat-race and set up in a winery, an orchard, a restaurant or a gallery. So here you have ex-accountants, ex-lawyers, ex-teachers - ex-everythings - happily tilling the soil, getting down and dirty, alongside fifth-generation locals.

On the outskirts you'll pass hillsides striped with vines, but even though the greatest burst of wine-growing has happened in the last few decades, the first vines were planted over 160 years ago. Now this is the state's third largest wine region.

The wineries are scattered around in a region that one wine writer has described as 'almost perfect conditions for wine-growing'. Mudgee's altitude is 450 metres and the red volcanic soil, cool nights and summer showers prolong the ripening of the grapes, producing unique wines.

Craigmoor Winery was Australia's oldest winery, established in 1858 by German immigrant Adam Roth. Many German immigrants followed and for a time the area was like a mini-Barossa. Roth's wife would make cheeses and take them to market in Mudgee. At that time the bush was so dense that they had to mark blazes on the trees so she could find her way home again.

On F&T's most recent visit, Deeb's Kitchen was our destination for dinner and the night. Owners Bechora and Sybil Deeb have a natural knack for hospitality and they've transformed a former schoolhouse into a popular restaurant and B&B. Bechora's Lebanese background guarantees that his food is irresistible and created from produce often grown on their land, picked from their trees or garden.

This Saturday is the monthly farmers' market day. Bags at the ready next day, we pick our way between the dozens of stalls and pause to watch one of the local chefs leading a bunch of children on a hunter-gathering forage preparatory to their cooking class in the hall nearby. Lucky kids!

You need several days to see all there is in Mudgee, although you can settle for a walk down the main street, dropping into the newly opened Market Street Cafe to sample some amazing just-made sourdough, then ogling the wares at Cherry Red nearby, a so-chic fashion boutique and Botobolar's organic selections, all within steps of each other.

There's a brewery in town now too, and other excellent cafes and restaurants catering to visitors and the many locals who have tree-changed here with city expectations where food is concerned.

With over 40 cellar doors in the area, and road-corner signs bristling with names from the best wine lists, it's almost impossible to know where to begin our tastings. We return to a favourite, Botobolar organic vineyard, with its wide views from the terrace outside the tasting room, and follow this up with Robert Stein, then High Valley Wine & Cheese.

A side-trip to Gulgong is a must - only half an hour away, but it makes us feel we've leapt back almost 150 years to the gold rush era. This is Henry Lawson's town and the locals have capitalised on the fact he is featured on our money, calling this the 'Ten Dollar Town'.

In the other direction, Rylstone is one of the oldest settlements west of the mountains, 45 minutes south of Mudgee. Most of the buildings are heritage-listed and in one there is an unusual cuisine and an unexpected proprietor. Chinese-born Na Lan, relocated here several years ago from Byron Bay, and has opened a cafe  '29 Nine 99 (her wedding date!) - serving mouth-watering yum cha dumplings. Seated amongst the Asian silks and artefacts she sells, it felt like an old Shanghai teahouse.

We had also come for the Rylstone Street Feast, held each November. Tables extend the entire length of the main street - a very long lunch for 350 diners - and there is street entertainment too: Scottish bands, circus acts, singers and more.

It's simply a wonderfully festive communal excuse to get together and eat the best of the local produce prepared by the best local cooks. All washed down by the best of the local wines. And we loved being part of it.

It's true, wine and honey are the key notes of Mudgee, but there is one more - magic - and this place is bottling it.

Have you visited Mudgee? What were your impressions?

The Facts:

Where it is: About a three-hour drive north-west of Sydney.

How to get there: Self-drive or coach or tours from Sydney.

When to visit: Year-round

Places to eat:

• Deeb's Kitchen B&B, Mudgee,

• Market Café, Market Street, Mudgee.

• High Valley Wine and Cheese, Mudgee.

• 29 Nine 99, Bridge View Inn, Looee St, Rylstone.

Things to do:

• Rylstone Street Fest, Rylstone, mid-November.

• Mudgee Farmers' Market, Mudgee, third Saturday.

Find out more: Mudgee Tourism