Kathy's place is lovely. It's a 30 minute stroll from the centre of Taupo and the walk is beautiful (along the lake). Alternatively, you can catch a cheap cab.
The place itself is comfortable and stylishly decorated. The house is a lovely Tudor style cottage and your room is private, with tea and coffee making facilities. The bed was extremely comfortable and the heater and electric blanket made a cold winter night very cosy! Kathy was a warm host at breakfast, which is included for a very reasonable overall price. I'd recommend this to anyone visiting Taupo.