Friends who lived in Pai recommended BaanMai Kon Muang - and helped booked me in for the first night. I had planned to extend for two more nights, and decided to do my research for other accommodation options. Frankly I was hesitant on BMKM initially after looking at their room pictures and rating - but decided to trust my mates.
They were right. BMKM is a charming, totally "under the radar" type locally owned boutique hotel in Pai. The hotel sits right next to Pai River, beautiful quiet and charming landscaping, good size and clean room, simple breakfast options (coffee/tea, toast and absolutely deliciously hot mushrooms/minced chicken porridge... yummzz).
Staff, though speaking minimal English - provided personable and good service. I enjoyed meeting the lady boss, who always have local snacks handy to share with guests.
BMKM is about 10 mins walk to Pai's walking street. Just turn left and start walking... you will reach Nong Beer corner after a slow 10 mins stroll, simply turn left and you have reached the famous night walking street. And if you don't fancy walking, simply get to know a regular "taxi" driver to ferry you around - cost on average Baht 30-50 per trip within the town area.
If you are looking for a quiet and charming option - away from the hassle of town area, I would recommend BMKM.