The island of Graciosa is one of the smaller of the Azores but is certainly no less picturesque or fascinating. Dominated by a mighty volcanic caldera and rimmed with lava-stone wine and pasture lands, it is a beautiful place to find oneself on a sunny, mild day. We explored the island by coach, visiting its many vistas and intriguing places, or took to the trails to discover what we could about the mysterious volcano. The highlight? Taking the 180 steps in a spiral staircase down inside the still active caldera to see the lake, huge cavern, and bubbling mudpot fueled by the still active magma below.