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Panaji, formerly known as Panjim and before that as New Goa, is the capital of Goa state. It is a rather small town, overlooked by the Altinho hill to the south. The town does not have great buildings or attractions, but there is enough here to keep you busy for at least a day.
The old district of Fontainhas is the nicest part of town. It has a lot of atmosphere and it is nice to walk around here. When you are done strolling, head for the Altinho, the hill overlooking the town. It offers great views over the estuary. There are good beaches close to Panaji. The seafront boulevard runs south for three kilometers.