The Blue Mountains has a wide range of accomodation to choose from, especially in the village of Leura. We stayed at The Greens B&B. It was set in one of the old houses just off the Mall, and each room was named after a classic author or poet. I chose Jane Austen, of course.
The rooms were luxurious, and so were the breakfasts. There was even muffins for afternoon tea.
I liked the little touches, like a set of Jane Austen novels in the room. It made for a very homely stay.