This is a very special pousada! It's a lovely oasis in a lively and fascinating old town.
Literaria is extremely conveniently located, spanning a car-accessible street on one end and the old, now-pedestrian centre of town on the other. The staff are extremely accommodating, and a special shout-out to the front-desk team, who were absolutely awesome. The amenities (except perhaps for the gym, which is small. But you should be walking around anyway!) are top-notch. They offer a nice breakfast spread.
I would definitely make this my choice next time I'm in Paraty.