Any descent resort in Waynad

Its not the distance Psycho resort looks like a place where you can enjoy with your friends, more for bachelors than for a couple and a baby :)

Wouldn't your wife like to visit her parents every once in a while Rem?! And wouldn't you need to "de-stress" yourself by going to these places with your friends while she catches up on family affairs with her parents?!;)
 
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Check out Vythiri resort

We didn't stay there but I've got some nice reviews from those that did...

Vythri is one of the best resorts I have been to. Great environment (you face a waterfall) and live in a min-jungle and excellent food, but the prices are atrocius almost 10 times his budget.

I have also stayed at Edakkal cave resort(Edakkal Caves, Wayanad, Kerala, India), has a stone age cave with drawings from that period as its key attraction. Thing to watch out for is dinner inside the cave, absolutely fabulous. Would probably cost around 3k per night per family, if my memory serves me right.

Check out a site called HolidayIQ | India holidays, India hotels, Reviews, Maps, Packages, Weekend Getaways, Forums and check for user reviews for more more options
 
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