dont stay in milan. milan is possibly the best place to actually live in italy, its easy and a little more open adn international than other cities, theres lots to do, entertainment and cultural wise. but you can't miss out on the travel. travel is cheap, trains cost about one third of what they do in england and its a pretty smalll country. you can be in rome in 4 hours. places no to miss are the obvious, venice, florence, bologna, rome but check out the lakes (como, garda, maggiore) , the cinque terre, siena (and tuscany in general). if you get the chance, hit naples and poositano, the amalfi coast(beautiful). the mountains by novara are nice too. turin is close and worth a shot.
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