Favorite thing: Skeppsholmen, small island between Gamla Stan and Djurgården. There are three museums (the modern art museum, Far East museum and the Swedish museum of architecture) and the boat hostel : the Chapman. Near the boat there is a platform where you can dive and swim!
Fondest memory: Sitting down here at the statue in Gamla Stan and watching the world go by. Across the water from here is another island; Skeppsholmen. This spot is only a few minutes walk from the Palace.