I warmly recommend Shankara. The rooms were well-equipped and the view spectacular. The pool was perfect, especially for our younger children. The staff was genuinely friendly: they helped me to get local SIM cards and medicine when our son got an issue with his stomach. There were surprisingly few tourists during Christmas and New Year, so we never had to wait for a massage or a quick lunch in one of the several local Warungs. Some of the family-owned restaurants even grow their organic food.
I've seen quite a few diving sites and this is clearly the best, particularly for snorkelling, with a stunning variety of corals and fish right in front of the hotel without any strong current. Take (or rent) your gear, walk 50 m down the stairs to the beach and after 20 m of swimming you'll start spotting hard corals (e.g. the bright blue Superman Montipora), some soft corals and schools of reef fish (butterflyfish, Moorish Idol, parrotfish, wrasses, trumpetfish, damselfish...). Truly a paradise!