In all Moorish towns, each quarter had its own hammam or public bathhouse- and there's a very old one to visit in the Albaicin area, on your way to the mirador. There you can see how baths really would have looked like - and yes, they were really fancy and adorned. When people took their bath, they took it in style. The patio with its fountain is charming, the frigidarium cosy and the colums of the calidarium nicely ornated. A very plesant place, indeed.
The old Albaicin hammam is located just before the archaeological museum, on the left side. There's a sign pointing to it. Entrance is free.
A friend a long time ago, suggested me to have some relaxing treatment here, it seems that they are good, but i have not tried by myself.... how knows maybe this year ;-)
Go for a Moorish bath! I can't remember the name of the place but it's right off the main plaza by the road to the Alhambra. The baths don't date from Moorish times, but they look like they could. You alternate between the hot and the cold water--very invigorating. Then you get a massage. Don't forget your bathing suit!