Overall Kodaikanal is worth visiting once but not the second time(May be the beauty is great in Sept-Nov duration). Most of the local sight seeing places arent worth it except Lake(obviously), Pillar rock and Coackers Walk.
For food : PLEASE DO NOT VISIT PARKS INN. Its a real waste :(
Apart from it dakshin Restaurant also isnt good enough. Overall let me accept we didnt get good food to eat. Hotel : We took the package from Js Heritage Hotel. Though they have maintained a good ambiance in lobby & rooms but actually its not well maintained. Bathrooms are small and sanitary fittings are not proper. Same is the case with electrical fittings. Its not a safe place to stay with children at least. But youl may find it a cheap and ok-ok option.
Sight-seeing : Our taxi-driver convinced us to visit couple of extra and distant places but the experience wasnt good at all. Dont pay attention to these lures. These places were : Neptiuinspul Falls, Palani view, Boombarai view, Mannavanur Lake, Sheep Farm