Avila
Avila, at 1,127 meters, it is the highest city in Spain. Kids will be impressed that it was founded in the 4th century in the Celtic-Iberian era and is a "World Heritage of Mankind" site, considered the best preserved example of a medieval walled city in the world. The city walls, almost ten feet thick, date from 1090 onwards.
Take a tour of the Medieval, Renaissance, Romanesque palaces of Avila, starting at the Provincial Museum in the Casa de los Deanes, a 16th-century palace built around an inner courtyard. The museum has examples of local furniture and pottery. Think about designing a walking tour of other palaces in the city. A few to put on the itinerary: Aguilar y Torres Arias, de Veladur, Marquis de las Navas, Polentinos, Davila, and Guzmanes.
Cathedral of Avila - The oldest cathedral in Spain, this is a fortress-like structure built mostly in the 13th century but with 15th century Gothic towers and Baroque touches as well. Inside the church itself are alabaster sculptures and choir stalls, as well as tapestries that date over hundreds of years are also quite beautiful. In the Cathedral Museum you'll see collections of silver and gold pieces, and paintings.
Inside the city you can rent bikes for a bike tour of the sights. Outside of the city itself you can rent horses to really get into the Medieval mood of this place.
Tip: Approaching Avila from the road to Salamanca, stop at the "Los Cuatro Posteles" observation spot: this is the best place to see Avila before entering the city and will give you a sense of its medieval charm.
Gredos Parador - About 45 miles south west from Avila is the Gredos Parador, a natural starting point to explore the pine covered Gredos Mountains: take a hiking tour, rent mountain bikes or horses or go trout fishing. Plan your visit to take advantage of the children's play area and lots of different dining choices there.