And another thought, for something completely different (and Malpensa is well north of Milan anyway):

Have you considered Lugano, Switzerland? It's an absolutely lovely city, and, as is the case with all Swiss cities (by law), it sits on a beautiful lake surrounded by mountains. It's got a couple of very upscale hotels (ok, ok, I forget their names, but easy to find), and there's lots to do.

Lugano is the main city in Ticino, the Italian speaking region of Switzerland. I used to work occasionally in Varese (Italy) and I loved to stay in Lugano because it seamlessly blends what would seem to be totally incompatible cultures (Swiss & Italian).

As an aside, for those who might consider flying into Lugano, the approach to the airport is one of the most amazing you'll find, as the flight threads its way between the hills around Lugano.