https://www.google.pl/maps/@50.0579466,19.9405584,14z
Krakow is a beautiful, walkable city, so nearly anywhere you choose would be a suitable nesting place. Because Krakow is low-cost, you will probably be able to afford a flat even in the middle of downtown. However, we nested in Kazimeirz, just a little west of the old Jewish quarter, and we were really, really glad we did. Kazimeirz is known for its variety of restaurants, and it is close enough to residential areas to also be near grocery stores and a big outdoor market. Although it is a place visited by tourists, it didn’t feel like the tourist center, and had a character and soul all its own.
Our flat was right on Plac Wolnica, which is the old town square for Kazimeirz. Occasionally, we had festivals right outside our window! There were many great restaurants within a very short distance, and a wonderful ice cream shop on the square. Just over the very beautiful pedestrian bridge was a Biedronka grocery store a few blocks away. We were right on the tram line, but it only took us 15 minutes to walk to the castle. We felt like we were in the perfect spot.
However, my second choice would be just to the west of the city, north of the river but east of the large park. There are graceful old buildings, wide boulevards, and you’re close to the city center. You won’t find the variety of restaurants and the vibe you’ll find in Kazimierz, but it’s a beautiful area.