Megalochori is a delightful, quiet village just a short bus ride from Fira and handy to Akrotiri. Hiring a quad bike for a day to view the sunset from the lighthouse or to visit the red and black beaches is a good idea and Diamantia hire were very good.
If all of the above fits you then definitely book Antonia’s Cave House (Atlantica Apartments). It is as pretty as the photograph and even better than you are imagining. It is a very short walk from several lovely restaurants.
Our one criticism is the bed which definitely encourages alone time as there is a big gap between the two single beds.