Sicily in mid-February

In general, I find your allocation in Option 1, to make sense.

I don't think you will find Taormina budget friendly. It is a lovely city, and we enjoyed the 3 or so hours we spent there. It is quite touristy, Apparently, some do not like Cefalu, but people never really say why. I found it charming and very picturesque. Some of our best restaurant experiences were in Cefalu. I think 4 nights in Palermo and 2 in Cefalu is about right. We loved Palermo, though it is quite intense. Cefalu would probably be relaxing after Palermo.

Have you looked at the Agrigento area? With the Greek ruins? You could get there via bus, I believe. With your time limit and use of public transportation, Agrigento may be quite difficult unless you make use of a tour/guide. You will find Greek ruins in Ortigia/Siracusa, perhaps that might be enough for you.

We really enjoyed Ragusa area and also Noto. Noto is a good day trip from Ortigia. I think you could find plenty to do in Ortigia for 4 nights. Someone just recently did a very thorough trip report on Ortigia if you'd like to search for it.

In terms of the weather, we were there in April. We had all kinds of weather! Sometimes quite warm, sometimes a bit chilly. I think as a February break from Montreal, it'd be delightful.

Edited to Add: Both Cefalu and Taormina are more "beachy" locations. In February, it is unlikely you'd want to swim, but both would still be pretty.

I've never been to Malta, but I know a lot of people that have been there and liked it. However, it is my understanding that there is a lot to do in Malta and as there is plenty to see in Sicily, I'd save Malta for another time.

Based on our trip in September, 2022, would suggest two to three nights in Taormina, omit Cefalu, two to three nights in Ortigia, three nights in Palermo including Monreale. Other options are: Mt. Etna tour; the Valley of the Temples in Agrigento. Enjoy!

I'd want 4 nights in Palermo if not more. I don't know whether it will be worthwhile to uproot yourself and move to Cefalu for two nights in February. I wonder whether the town will be sort of dead. Maybe we have someone who has been there in the winter and can comment on that. It certainly would be a lot quieter than Palermo!

If there's a financial issue in Taormina, it's likely to be hotel cost. Just take a look on booking.com for your dates and see what you think. I'm not a fan (crowded, boutique-y, expensive), but I acknowledge the physical beauty. I stayed in workaday Catania and day-tripped to Taormina. Next time I plan to stay in Acireale (haven't been there but photos look nice.) I'll need to go back to Catania for the WWII museum, though.

My impression about Malta (sight unseen) is the same as Jules's: Plenty to do there for a full week or longer, and you aren't touching the northwest part of Sicily, or the interior. In addition, there's the issue that (as I understand it) the ferries for Malta depart from a sort of obscure spot on the southern coast, a place you would otherwise not go to. So the trip to Malta might require more time than you anticipate. (I believe there are flights, though.)

We were happy with our stay at Casa Cifali in Taormina. Our room was simple, attractive and functional. Location is good, near both the Greco-Roman Theatre and Lumbee parking. A simple breakfast was included. Hosts were kind, helpful and provided spot on recommendations. Both the room and nearby, delicious eating options were budget friendly.

Cefalù is only 1 hr from Palermo and can be easily be visited as a day trip from Palermo via train. No need to spend nights there since you don't seem to have a lot of time.
Just add a night to Palermo and you have your day for Cefalù.
Since you are traveling in February I’d stick to cities. Palermo is nice and I don’t think it would be hectic in winter.

We were there in mid-February, and it was cold enough to need light jackets during some days and more layers at night. Local people were wearing heavy coats, a lot of puffy down jackets. Snow on top some of the mountain tops. Windy in many places.

So thats one data point.

I'm thinking now

Valletta — 3 nights, day trip to Mdina
Siracusa - 5 nights - take a day trip to Catania, and a day trip to either Noto or Modica (but which?)
Palermo - 4 or 5 nights - day trips to Cefalu and Monreale

I did kind of want to stay in Cefalu for a night or two but maybe it's too much schlepping. Perhaps some day it will be possible to go back and do it at a slower pace.

Modica was interesting and is known for chocolate. But, between Modica and Noto, no question Noto, for the baroque churches, very special.

In terms of overnighting in Cefalu. I like to be in the towns I visit at night and in the early morning. Also, two hours on a train for a day trip is a lot for me. I will admit to a bias against long day trips and it doesn't take us long at all to pack and change locations. That said, you are visiting in February, and Cefalu may not be all that lively.

Catania has interesting churches and an excellent WWII museum (closed Mondays). It was fun to wander around town, especially in the market and fish market.

I’ve been to Malta (2 week trip) and to Sicily (2-1/2 week trip). You could do what you’re proposing, but I think staying only 3 nights in Malta is really cutting things too short. If you’re making the effort to get there you need more time. We loved Gozo. The pre-historic sites are amazing, but esp the Hypogeum. Valletta is a wonderful site. Public transport is excellent. I think you will really like it, but 3 nights (2 days?) is just not enough.

I was in Taormina in mid March, and the price of our apartment was way way way lower than we expected. The town was very quiet. Hardly any tourists. I loved it that time of year.

Just a question... I was planning to go from Palermo Airport to Cefalu by train on the day I arrive. But I'm arriving on a Sunday and I realize there are big gaps between the trains on that day, such that even though I land at Palermo Airport at 13:30, I probably won't get to Cefalu until 18:30 or later. This is making me rethink my plans somewhat. I wanted to spend two nights there. But if the first day is gobbled up, I wonder if I shouldn't just extend my stay in Palermo and take a day trip or even two to Cefalu. Any thoughts? I had read "hourly" trains to Cefalu from Palermo Centrale but there's a three-hour gap in the middle of Sunday afternoons when I'd need one.

I'd go to Palermo first and then Cefalu. If it's sunny, Cefalu will be very scenic, but if it's cloudy, not so much. I quite enjoyed a full day there (2N), arrived late afternoon from Palermo and left right after breakfast back to Palermo. Since days are shorter in February, I'd say 1N is enough (add the night to Palermo). I stayed in a hotel very near the train station - it was less expensive than being in the historic center. Cefalu was the most expensive of all the places I stayed in 3 weeks, though I didn't go to Taormina. I left my luggage at my hotel in Palermo, which was an easy walk from the train station.

I wouldn't go to Malta in February. I was there at the beginning of June and the first day was cloudy, then sunny skies for the rest. It's hard to explain how absolutely huge the difference. When it's sunny, Malta is one of the most scenic places I've been. When it's cloudy, you wonder why anyone recommends it.