We finally decided to take the kids up to Tahoe this winter (Picture Link). We chose Granlibakken Lodge based on a few recommendations from my coworkers. It didn't disappoint, we originally wanted a room in the main lodge but ended up with a room in one of the newer "mini lodges" that had a little patio. The kids could go out back and play in the snow. Granlibakken is great for kids since they have a small sledding and ski hill along with all the rental equipment. They loved it, even after taking a couple of wipeouts and a few snowplows in the face thanks to me (note: don't use your boots to slow the sled down if a kid is with you :)
We paid a visit to Squaw to check out Olympic Village and ride the supertram up, which the kids really enjoyed. It was windy as heck though.
The other pics I added were a visit to Gilroy Gardens - we haven't been there in a couple years so wanted to take Kensi. They actually had a special where you could get a free membership for the year so we might head back at some point, though it's a bit of a haul from the peninsula. Rides are probably best for 3-5 year olds.
Picture Link: 2012 Lake Tahoe and Gilroy Gardens