If you have a week time, it's enough for cycling to Dali, Lijiang, Shangri-La, I have cycled through this trip line several times, following this trip, there will be these places to see.
Shangri-La which has world famous snow mountains Meili\Haba\Baimang, tiger leaping gorge, Lancang or Mekong river gorge, wild grass land, forests, lakes, this is a magic world...
Tibetans, Lisu, Han, Naxi, Yi, Bai, Muslim...They all located in this area, and they turely keep their own custom, dressing, architecture and wedding ceremony.
Lijiang Old Town, a familiar name, it located in Yunnan has another name called Dayan Town with 800 years old history, and it is the only famous old town in China that doesn't have gard walls.
Since a long time ago, Lijiang became an important town for its military location and trading merchandise. In Lijiang the Naxi people is the major residents, the people here is still doing their tradional handicraft industry such as copper and silver forging, leather working, spinning etc..
Dali, cycle into the Bai village, you will find it's so interesting about their native god stories, each village has one native god for protecting their property and family, they have their own belief, but still there are christians.
The dress of Bai people is interesting too, you can read if the girls are married or not from their dressing, and the old Bai women are wearing different kind of clothing from the young girls.
When you are cycling in Dali, never forget to eat the local food and drink, Xizhou pancake\ fish en casserole\ Erkuai\ plumwine etc.