We stayed at the hotel called "Albatros Club Mykonos", which is in the northern part of Mykonos, close to Panormos Beach. It was the best decision we've made and we had a fully relaxed week at this familiar hotel.
You have your own little apartment and therefore no hotel-feeling at all. The family was very friendly and happy to help us with every question. Breakfast is included and always served with fresh fruits, self made cheese and other seasonal things. If you decide to spend a whole day at the hotel and its beach you can also order self-cooked lunch and dinner, from Greek Salad to Souvlaki - yumm!
What we found as super luxury was the shuttle service to Mykonos City for small money.
If you decide not to stay directly in the city, I can highly recommend this one! :)
with eyes wide open, xx Maike