We loved Paolo's appartment, it was so nicely decorated, very clean, it had everything we needed in the kitchen, bathroomn toilet, we did not miss anyhing, he even provided us Netflix!
Location is great as you can park in the nearby private parking (for 15€ a day if you go frim Oct to May, June to Sept is 17€) and then walk everywhere from there. Taormina is a must and staying at Paolo's is compulsory as well.