About two and a half hours Northeast of Milan is the city of Trento, where one of Italy’s largest Christmas Festival takes place. There are around 50+ vendors that set up just outside the center of town to sell their food and gifts. There are numerous hand made Christmas decorations/gifts and food from all over Europe. Something else you will always find at the Christmas festivals is homemade hot wine Vin Brulee. It is an acquired taste, but if you can find one that has a lot of spices in it, it can be a tasty warming treat!
While in Trento we ate at an Austrian restaurant called Ristorante Birreria Forsterbrau Trento. The food was mediocre at best, but the decor and staff are fun and authentic.
Although Trento has the “largest” Christmas festival in Italy, you can walk through it and see everything in an hour or two. The city itself is very pretty and there are tons of little windy streets to explore. Also, make sure to be there at night because they string up tons of Christmas lights all over the streets.