i retired about 10 years ago to lovely sunny warm Zitacuaro, this city is one of 4 cities in the whole world with a perfect year around climate!
there are numerous hotels/motels in zitacuaro and they do not charge an arm and a leg, figure about $50.00 a night more or less.
you will find that in the city of Ocampo, there is a very large butterfly preserve too, it is closer than Rosario (I think) but either location is wonderful!
in winter Angangueo does get very cold as the road goes right up the side of the mountains (almost to Heaven!)
FAR MORE TO SEE AND DO HERE THAN THE BUTTERFLY PRESERVES!! TAKE A DAY OFF AND GO To LOS ASUFERES!! it is a tourist spot you wll love, it too is high in the mountains and is a series of hot spas where steaming volcanic heated water coming out of the ground is channeled into large swimming pools of different tempratures from warm to very hot, 4 different pools 4 different tempratures. camping area if you like to camp!
there is the caverns of (whee! i forgot the name will try later to find it) these are natural caverns and easily assesable. there is the Aztec (i think) ruins at San Felipe that is a worth see. once you are in zitacuaro there is a multitude of buses "Combies" and taxis to take you any where you want to go also much arts and crafts in the area!
is by far better to fly to toluca than to Mexico city, another option is to fly to Morelia, both have numerous buses from first class to xxyeoow6 class running all the time.
any questions post it here "Gringo Jak" best cook in Mexico according to the neighbors and especially their kids!