This village on the side of a hill, elevated about 100 meters above the sea at Hersonissos, which is a 20-minute walk away, is about 30 km east of Heraklion. It is another of those places for people who want to actually sleep at night, rather than stumble to their rented room as the rosy fingers of dawn strum the horizon, after an all-night binge of booze, noise, and dancing. The noisy at night place, Hersonissos, is a little less than 1,000 meters downhill, so it's always there if you want it.
Koutouloufari has very pleasant, narrow, brick-paved streets and lots of traditional Cretan architecture, featuring stone houses, hidden, vine-shaded inner courtyards, and arches and rounded casements in some of the windows. Many of the owners of houses in the village have trained vines to grow and spread around windows and doors, giving their buildings a pleasant, green aspect. The village is surrounded by olive groves and farmland, and the view to the north shows the sloping, olive tree-filled landscape running down to the blocky white buildings of Hersonissos, and the sea beyond it.
It's a pleasant place to linger over a long meal on the central square, and enjoy the cool of the evening and watch the life of the village unfold around you. There are a number of rooms and apartments for rent in older, restored buildings, and most of the more modern buildings mimic the style of the village and blend right in.
There are a lot of restaurants and tavernas to choose from, and a fair number of cafes and bars. It's a nice place to wander around. Visit the local church of Agios Vasillios (St. Basil, who is the Greek version of Santa Claus), admire its icons, and have a look at the much older church in its back courtyard.
In addition, you can visit places like Heraklion and Knossos, just a half hour's bus drive away. There's plenty to see and do in the area, and Koutouloufari is an ideal place to rest up and recharge your batteries between your outings.