I actually prefer to get the train to puffing billy - seems quicker than driving and is easy from the city - Belgrave train station has its own access way to Puffing Billy station so is really easy (easier than parking I reckon) - as long as you work out your times is fine - we did it in December by train again (3 adults 2 kids don't fit in our car) and was really nice way to do it. The kids love the normal trains too (even though they go on them alot). If you go only go to Lakeside is my suggestion - that is an hour each way and there isn't really alot more to see by going all the way to Gembrook, plus there is more to do at Lakeside - big picnic area with walks, a little swimming pool, pedal boats on the lake, a little model railway exhibit, cafe etc - the first time we went on it went all the way to Gembrook but isn't worth the extra time or money IMO - spend the extra time at Lakeside instead.
My two both love a wander along South Bank - the NGV kids area is quite good for an hour (especially if wet) and the garden out the back is nice to have a look at. Round the front of Hamer Hall if you are walking from NGV to South Bank there are some excellent mirrors (part of the building) but kept my 3 year old entertained for ages. A trip on the boat along the Yarra is nice - we like the one to Williamstown
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