If visiting Wayanad, a lovely place to stay is "Stream Valley Cottages", 300 meters off NH212, and very near the Pookote Lake.
There is a real stream that flows through the place, so the name does in fact reflect reality. There are probably all of 15 or so cottages, categorized into three types - earth, on stilts, and a tree house. The earth cottages, as the name suggests, are on ground level, and probably the best bet if you have small kids. The cottages on stilts are the best since they are larger than the earth cottages, feature a small kitchenette and living room area, and offer a very nice view of the surrounding hills. The cottage (maybe there are more than one, but I don't remember) on the tree is a different experience altogether. Families with kids are not allowed on the tree houses, understandably.
The service is friendly, and bare bones. There is no dining area, nor is there any attached restaurant, or coffee house, or swimming pool, or any such thing. The food is cooked on an as-needed basis, so you need to tell the people in the morning whether you would be eating lunch or dinner. They bring the food over in a tiffin, to your room, and pick them up later.