Marayoor

On the way to Munnar, after crossing Udumalpet, there is a place called marayoor.
Wonderful waterfalls, many more. You can see the pictures of the place.Then history says, this is the place where pandavas of Mahabharata epic , stayed for a while during their exile. You can easily glance through various sections in the following link. I am sure you will enjoy, as i did, reading through.
http://en.wikipedia.org/wiki/Marayoor

Also, in the following link, clicking on Thoovam on the right and many more, you can view the screenshots. The falls is wonderful to watch.
http://www.marayoor.com
As for tourists stay is concerned, Munnar wud be the best place to stay, but marayoor in the route to munnar, is a place to spend some time with natural scenaries.

A journey with plan, preparation.......
http://travel.paintedstork.com/blog/2005/07/hill-stations-of-south-india.html