Riquewihr, France: One of Europe's prettiest towns and a popular river cruise excursion

As we approach Riquewihr, there's little sign of anything particularly memorable ahead. Framed by sloping vineyards with a church spire poking above red-roofed houses, this looks like any number of tidy, modest settlements we've passed in the past 30 minutes or so on our coach journey from Breisach, the latest port of call on our swanky River Rhine cruise with Crystal.

After hopping off and wandering through the arch of Riquewihr's neoclassical town hall, however, our group arrives at the bottom of a steep, hitherto-hidden thoroughfare that takes the collective breath away. All bumpy cobbles (gleaming from a recent downpour) and lurching, candy-coloured, stone and half-timbered buildings, Rue du General de Gaulle resembles something from a Brothers Grimm fairytale. You could imagine Hansel and Gretel or Little Red Riding Hood trotting down it.

While Riquewihr (pronounced ricky-weer) sounds – and looks – German, it's actually one of Les Plus Beaux Villages of France – a club of about 150 rural villages that complement (and compete against) each other with their postcard-beauty, history and cultural heritage. Most of Riquewihr's 2500 population are French citizens but, first and foremost, they consider themselves people of Alsace, with some speaking Alsatian – a German dialect – as well as French.

We're learning a lot about the region on this cruise as the Rhine, for a part, acts as a natural border between Alsace and Germany. Until the mid-17th century when Louis XIV, the Sun King, annexed it for France, Alsace was mostly ruled by Germanic kings, counts and dukes. Wrenched back and forth a handful of times, it's been part of France since 1945.

Remarkably well-preserved, having escaped any major wartime damage, Riquewihr is a lovely place for a mooch-around, both on the main drag – which is capped by an imposing medieval watchtower and a gate with a still-functioning drawbridge – and along cobbled side alleys flush with more ridiculously photogenic old buildings and pleasant views over the vineyards. Riquewihr is a pit stop on the Alsace Wine Route – a 170-kilometre trail through the Alsatian countryside – and there are oodles of winemakers' shops and cellars in which to sample (and purchase) the local tipples.

Fleeing another spring shower, we descend into Maison Zimmer, a winery owned by the same family since the mid-19th century. Made of rough stone and timber, the cellar dates back to 1572 and, strewn with stuffed foxes, oak barrels, dusty bottles, vintage mashing equipment and bygone photographs of Riquewihr, it's an atmospheric venue for a tasting session. Our guide, Heike, explains that wine has been made locally for more than 2000 years, with the terroir – hot summers, cold winters and 10 types of soil and rock in which myriad vines can flourish – helping to yield a wide variety.

We try five wines, including Gewurztraminer, an aromatic white wine, and a Cremant d'Alsace – a sparkling Alsatian alternative to champagne (and an increasingly popular drink throughout France). As we sip, we nibble on slices of Kougelhopf, a sweet brioche-like fruit cake that graces shop windows and shelves in Riquewihr (you'll also find locally made jam, chutney, beer, brandy, fruit liqueur and whisky for sale).

If you fancy a sit-down meal, Riquewihr's bistros and restaurants serve the foie gras, Rhine fish in riesling sauce, suckling pig with honey, tarte flambee (Alsatian pizza), and choucroute (a regional staple of sauerkraut with sausages and other salted meats and potatoes). I resist these temptations, with one eye on tonight's five-course dinner aboard Crystal Bach.