Traveler gathering place: those who seek to make friends, make money (if you have a gift/art this is a good spot to settle down for a while), try good wine (this region is the number one producer of white wines and the numerous wineries offer free tastings), get to know a different culture (awesome northern dishes and lots of local art), discover amazing landscapes and geology (from colorful hills and rivers to vineyards and deserts with unreal rock formations). Exactly, this little oasis in the province of Salta has it all. Undoubtedly, one of the most incredible places in Argentina.
Besides the town, very nice in front of the mountains, there is a super recommended hike: the one to the Cascadas (waterfalls) del Rio Colorado. This route runs through a spectacular canyon following a river (you need to cross it on several occasions) in which you can swim along the way in pools and waterfalls. The setting is stunning, desert type, with cactus and dry plants dominating the landscape. There are also some cave paintings nearby.
To go to Salta capital you have two alternatives, both as different as they are amazing. I recommend doing both, no matter if this implies going back to Cafayate and losing some time. See Northwest of Argentina, Third Part.