Shipshewana is great, you'll love it. I work in town and as far as hotels go, I would suggest the Farmstead Inn
http://farmsteadinn.com/. It's a very nice hotel within walking distance of everything, and has all the amenities you'd expect. There are quite a few B&B's in "Shipshe" too. The Backroads website would be the most complete list, but the B&B we always suggest is "Peaceful Acres"
http://www.peacefulacresbandb.com/. And since we're on the quilting board, let me recommend the Musical "Half-Stitched" at the Blue Gate Theater. It's based on Wanda Brunstetter's new book about a quilting class. It's very funny and has great music, a nice thing to do in the evenings after a long day of looking at fabric!
http://www.riegsecker.com/shipshewan...tched-musical/
Hope you have a great visit!