Beautiful experience and worth the trip in spite of the 3/12 hours travel fromTaipei, seeing the place with blooming cherry blossoms, riding in the boat, comfortable vehicle and simple but delicious lunch with Gordon our driver-guide who speaks English.
Sun Moon Lake is around two to three hours away from Taipei by car. Probably faster taking the train.
The lake is big and calm with hiking and biking trials around it. Great for taking it easy and if you're not on a tight schedule. Some interesting shops and food items in town. There's also a huge temple that overlooks the lake. Try to catch sundown at the top of the temple.
There's also a nearby museum with distinctive modern architecture that also looks out into the lake.