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Where else in India can you celebrate the pre-Lenten Carnival, eat spicy chourisso sausage, and wander into a whitewashed Catholic cathedral? From its festivals to its food, to its old district Fountainhas, the city of Panaji (Panjim), is a tiny piece of Portugal plunked down on the sunny coast of India's western state of Goa. The city's pleasant, friendly atmosphere makes it a perfect place to linger, especially in the many small cafes and bars you'll find all over town. Panaji, now the state capital of Goa, was once the administrative capital of the Portuguese eastern empire. The Portuguese first arrived in 1510, where they set up a base in the town of old Goa, about five miles to the east. The capital was moved to Panaji following a series of disasters in Old Goa, including a devastating outbreak of the plague. The Portuguese would stick it out in Panaji until 1961, and in total, their rule of both cities adds up to nearly five centuries. Panaji's most interesting part of town lies along the west bank of the Ourem River, and is known as Fountainhas, the old district. It's here where you can wander the narrow lanes, among red tile-roofed houses with overhanging balconies, and small bars serving feni, liquor made from cashews. Nearby is the Chapel of St. Sebastian, which houses an ancient crucifix, and the Church of the Immaculate Conception, which dates from the 16th century. Further north, toward the Mandovi River, you'll find the Secretariat, a former Muslim palace that the Portuguese used to house the viceroy. Old Goa is just a short bus ride away and is well worth a visit. Here you'll find many more beautiful old churches and cathedrals, such as the Se Cathedra; the Convent and Church of St. Francis Assisi, and the Basilica of Bom Jesus, where the remains of St. Francis Assisi are kept. Old Goa can be covered in half a day.