Inya Lake, created by the British as a reservoir in 1883, is roughly five times larger than Kandawgyi. This is one of the most exclusive areas of the city to live; University Ave Rd, on the lake's southern side, was the address of Aung San Suu Kyi's home, where she spent her years of house arrest, as well as the US Embassy.
The best spots to view the lake from are the parks running along part of Pyay Rd and Kaba Aye Pagoda Rd. The paths are open to the sun so bring an umbrella for shade.
If you're into sailing, drop by the Yangon Sailing Club , which is open to nonmembers on Friday nights for drinks and has a lovely lakeside setting.