www.gokunming.com/en/blog/item/342/torch_festival_time_in_dali
I find the smaller events are much more enjoyable. The big Torch festival in Chuxiong (Yi) is very crowded.
I prefer the smaller events in Dali (Bai). I especially like to see the community participate in making the giant torch and all the surrounding ceremonies that are included in preparation the days prior to the event. Best one yet has been in Zhou Cheng near Dali Old Town.
Check internet for different dates for this event. This is a minority festival, not a national festival. It is also a lunar calendar festival so look for the solar equivalent this upcoming week. Fun to watch if you have not participated in one before. Still Fun even if you have seen many of them like me - Hehe! Best to go to different places to see how each is similar and different.
Do not go to the Minority Village near Dianchi Lake - ends up costing you and arm and a leg for a totally fake and overcrowded environment. Best to find a small village - Bai and Yi Torch Festivals are very different so best to try a different one every year.