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Loads of quaint little shops and cafes, and tons of cool cottages for the viewing too. You can trek through the massive Hampstead Park (wear good walking shoes - it's pebbly) and take the dog for a nice run through the fields. The highlight of Hampstead Heath has always been the crepes at La Creperie de Hampstead, a little stand along the high street, which offers amazing sweet and savory gems bursting with calorific flavor and decadence. I especially love the simple butter sugar crepe (ask for a splash of Grand Marnier - it makes all the difference) and for savories, try the mushroom and garlic cheese crepe.
