A large art & language school with an excellent gallery and a cafe. You can walk freely around the grounds - and while I would not consider them extensive it's a pleasant tour. There are a few really beautiful murals on the grounds - some new, some not. The school has a website with class and event schedules but I don't remember the url.
The building used to be the summer house of the Canal family - their winter house was up on the hill near the Jardine I believe. After the Canals the building became a convent - supposedly there are underground tunnels from the building to many of the churches in town. Finally in the 1930's an American turned the building into an art school.
The gallery that sells student and teachers' work is to the left of the patio. There is silver jewelry, sculpture, batik and paintings. The work was impressive.
For the Day of the Dead there were several altars in the gallery and one in what seemed to be an old chapel.
There was an old woman at the door to the Instituto selling marigold wreaths for Day of the Dead - of course she was quite gorgeous sitting there with her wreaths. She charged gringos $10 per click of the shutter and her son and husband were sitting just inside the patio waiting for someone to try and take a snap without paying.