If your coming from CA and not renting a car you will definitely need to stay in town somewhere. Once there the buses can get you where you want to go.
However, if you're going to have a car, about 30 minutes to the east of Paducah is Grand Rivers. There is Lighthouse Landing that is right on the lake and beautiful and not real expensive. There is also Green Turtle Bay Inn that is beautiful and on the lake. Check them out on the Internet.
And in Grand Rivers is Patti's restaurant, a must if you can get there. Their pork chops are delicious!!!
We're going again and it will be our tenth year.