We had a very pleasant stay at Kaung Lay Inn. The staff were friendly and attentive; they booked our onward bus ticket to Bagan and told us how much we should be paying for taxis around Yangon. To our delight, we were given a free upgrade. The room was large and characterful, with ensuite, mini bar and A/C. The shower was hot and powerful, but the décor would benefit with an update. The bedroom could also do with some attention, however the few imperfections added to the charm.
The breakfast was excellent, with table service consisting of eggs (cooked as requested), toast, pancakes with honey, fruit, fruit juice and coffee or tea.
The hotel's location means that most sights are a short taxi ride away, easily hailed from the main road near the hotel and costing relatively little (2500 Kyatt to Shwedagon Paya).
The hotel is positioned down a small and quiet side street and just around the corner from a very good tea shop (café/ restaurant). Called the Modern Tea Shop, it was in fact featured in Time magazine serving good food at good prices along with local tea (and Chinese tea), cakes and pastries. It is also a good people watching spot.
Overall we would recommend Kaung Lay Inn to anyone looking for a relaxed and charming stay in a characterful and homely setting.