For what you end up spending on parking, you should get a hotel in the downtown area. We stayed way out from the center of the city, and ended up spending a little more 'cause we had to pay to park everywhere we went.
The Bata Shoe museum is neat and quirky. The Royal Ontario Museum is nice. Toronto is such a great place. The weather so far here (We're about 4 hours straight south) has been great, so I'll keep my fingers crossed that the snow doesn't set in before your trip.
I'm so excited for you! Do you have a plan? There are some really nice restaurants you can choose from for your romantic dinner!
On the needles: Tempting for Kate, cabled jacket for Emma