So what do you do in your free time? Where would you recommend traveling to, or doing

I really want to find something new and exciting, still a little new to this city

Drinking

Cool and Kunming don't go hand in hand. Better try another city.

For real excitement I walk to Wal-Mart and sneak a Snickers Bar when my wife isn't looking! Other than that Kunming is a good central base for travelling to other places, but I assume you were asking about what you could actually do here.

Plenty of things to do here!
1. Watch grass grow.
2. Watch them tear down a building.
3.Sit by a busy intersection and watch the accidents every few minutes.
4. Watch some more grass grow. Change location for even more excitement.
5. Drink
6. Drink coffee
7. Fly a kite.
8. Clean your house.
9. Swim in Dianchi Lake.
10. Get a haircut.
Too many more to list.

Nothing exciting happens here.

Excellent! that settles it, Im moving to Kunming, I like to do nothing and have a good excuse.

On a nice partly cloudy day like the last few, rent/borrow/own a bike and ride to the west entrance of HaiGeng Park via DianChi and GuanJing roads. There is a wonderfully quiet and pretty back road that parallels DianChi if you're up for exploring it out. Go on a weekday and you can even sneak a ride on top of the tourist walkway on GuanJing for some pretty scenery. Once at the park, pay a 10rmb entrance fee and then go have lunch/snacks inside the park. Better yet, is to go as a group and rent a bbq slot or picnic on the grass. The water will most likely be smelly green now, but when it's not, HaiGeng is even nicer. You can ride out of the east exit and explore the nearby sports complex and then make you're way home on XingTi Rd.

The weather and ability to see blue skies is a big reason so many foreigners reside in a tier 2 city of this size. So I like to take advantage of the climate by taking in the pleasant parts of Kunming.

Wow - - many things to do:
+ Green Lake - - the visit Library and nearby Military Museum
+ Many other museums
+ Golden Temple
+ West Mtn (climb or drive)
+ Show - Dynamic Yunnan
+ Traditional Chinese Massage (many places)
+ Dian Chi Lake area (Nationalities Villages)
+ Tea Selling Market
+ Sidewalk "Night Markets"
+ Universities
+ Countryside

The people who have said there is nothing to do in Kunming are either uninformed or not trying. There is plenty to do in this city. I've only been here for a couple of weeks and I have already found live music, squash courts (which in China is amazing), a rock climbing community and many other things. You just need to do some looking around and you'll be sure to find something fun to do. Don't listen to those naysayers.