Despite its' reputation as the capital of licensed sin, Amsterdam is probably Europe's most civilised city. Once you look past the red-light area and the brown-walled coffee shops, you'll discover the rows of beautiful houses, flowers spilling out of window boxes, friendly residents gathered at pavement cafes sipping coffee or whizzing past on cycles and the simple life of the houseboat people.

For tourists, it is like stepping back in time - but this is no theme park. Amsterdam is a city where people live and work, where day-to-day life goes on despite the millions of visitors each summer. I can remember my first visit. Like most people, my first view was walking out of Central Station onto the big square flanked by canals. It was like a wonderworld to me, used to the staidness of English country life.

Later I would discover that the station was the hub of a semi-circle of canals that defines the heart of Amsterdam: Singel, Herensgracht, Keizersgracht and Prinsengracht. Here you can find the famous red-light district around the Oude Kerk, the Royal Palace and some of the city's fascinating museums. You are also likely to have your first encounter with a cyclist. Don't expect them to swerve for you. With more than 600,000 cycles criss-crossing the city every day, the bike is king, so make way.

The best way to find your feet is to take a canal-boat trip. The city's 17th-century Golden Age is brought to life as the glass-roofed boat glides along the waterways and into the harbour. Among the sights you will encounter lovers kissing on the romantic bridges and children fishing and playing on the banks.

You will probably pass the Haarlemmersluis floodgates (used in the nightly flushing of the canals), the Cat Boat (a houseboat with a permanent population of around 100 felines), and the narrowest building in the city. Your guide will also point out the official residence of the mayor, the "Golden Bend" of the Herengracht (traditionally the best address in the city), and many picturesque bridges, including the famous Magere Brug (Skinny Bridge) over the Amstel.

With a scarcity of hotels and an abundance of tourists, finding a hotel room in Amsterdam is not easy. Book early if you want the best accommodation. When staying in Amsterdam, you have to decide whether you want to be in the centre of the action (Dam Square or near Central Station), or near the Rai (for shows and conventions), or somewhere 'in between'.

During my most recent visit I opted for ‘in-between’ and stayed at the Prinsen Hotel, ideally located only one block away from bustling Leidseplein, but tucked away in a quiet street. It is a quaint hotel with a friendly staff, comfortable rooms, an elevator (a rarity in small Amsterdam hotels) and a delightful little garden.

When it comes to recommending sights worth seeing, my cup spilleth over. There is so much to do and see that it would take at least a month to experience Amsterdam fully. However, if you have only got a week or a weekend, the best place to start would be the museums. There are three major museums, the Rijksmuseum, the Stedelijk (modern art) and the Van Gogh.

My favourite is the Rijksmuseum, which houses paintings by some of the Netherlands' great 17th century painters such as Rembrandt, Vermeer and Van Hals. The prize piece on show is The Nightwatch by Rembrandt. The museum is currently being renovated, so some parts are closed. However, there is a small branch of the museum at Schiphol Airport.

The Stedelijk Museum building is closed for renovation until 2008, so the collection is housed in a tower east of the central station. A major collection of modern art from around 1880, the museum offers a diverse exhibition program, including highlights from the main collection of modern and contemporary art, photography, applied art and design after 1968.

If you are an admirer of Vincent Van Gogh, you'll love the Van Gogh Museum. There is no other place in the world where you can see so many of his paintings under one roof. You will find more than 200 of his paintings, as well as 500 drawings and 700 written documents. Three of the most famous paintings in the collection are 'Sunflowers', the 'Self-Portrait with Felt Hat' and 'the bedroom', where the artist displays his own simply furnished bedroom.

Art lovers also flock to Rembrandt's House in Waterloo Square. The 17th Century house where Rembrandt lived and worked is restored to its former state. Check out his studio, living quarters and his art and curiosity cabinet. This room is filled with objects Rembrandt collected such as unusual weapons, plaster busts, stuffed animals and colourful shells. Rembrandt was forced to leave the house in 1658 when he was declared bankrupt. His bankruptcy came about because the company who commissioned the Night Watch were dissatisfied with the painting.

If that all sounds culturally exhausting, you can get some relief by buying some beautiful tulips at the amazing flower markets, visiting the amazing Sex Museum on Damrak or the Heineken Brewery (now a museum and visitor centre, but you do get glasses of lager with each entry ticket).

You can also visit the Dam Square Palace, the official home of the monarch, and wave to the people on the square from behind the balcony windows, just like the Queen of Holland does! A final must-see is the Anne Frank House, the wartime hiding place of the young Jewish girl and her family. Go early, or late, to avoid the queues.

With more than a thousand restaurants, you won't have a problem finding somewhere to eat. A good selection can be found in the Leidse Square area, but it's surprisingly difficult to find traditional Dutch food. Two good choices are De Blonde Hollander in Leidse Square and D'Vijff Vlieghen in Spuis street, which offers 'new Dutch cuisine' in a charming row of 5 historic houses. Wherever you eat, it's worthwhile remembering that the Dutch dine early, so some kitchens close at 10pm.

You'll probably find that most of your time will be spent in the cafes and bars, which line the streets of every neighbourhood. Both sell alcohol and food, and you can usually choice from seating inside or on the terrace outside for the same price. Coffee is served Hollands with evaporated milk, espresso, cappuccino, and verkeerd ('reversed'), which is with lots of hot milk (the Dutch version of a Caffee Latte). Beer-lovers should try a witbier (white beer) like Hoegaarden or Dentergems, with or without a slice of lemon.

The major entertainment area is Rembrandt Square, which is lined with bars and discos packed to the rafters. Nearby is Reguliersdwarsstraat, which is definitely the hippest street in Amsterdam. Expect a mixture of upmarket gay bars, restaurants serving expensive French cuisine and night clubs catering to trendy media buffs, businessmen and local celebrities.

It’s not surprising that Amsterdam is a favourite weekend destination for all Europeans. The Dutch know how to have fun – and it’s infectious. As you are leaving from the wonderfully efficient Schiphol Airport, remember to take home some cheese, chocolate and as bottle of Jenever (Dutch gin). You will treasure the memories of your stay in Amsterdam – and chances are you’ll be back for some more.