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Trieste to Cortina D'Ampezzo - Driving

My family (4 adults) will be driving from Trieste to Cortina d'Ampezzo in July, eventually making our way to Milan. We have done southern Italy, so we are hoping to explore the north, hiking in and around the Dolomites. I was thinking we would stay a couple of nights in Cortina d'Ampezzo, but it's really pricy to stay there. Any suggestions on where to stop on the way to Cortina d'Ampezzo? We would like to be in a city center, around the hustle and bustle with good restaurants and sightseeing.

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You might try Sesto/Sexton, a less mobbed area than some and less expensive by far. The little town of Moso is particularly cute but maybe too quiet for you?

San Cassiano makes a nice stop, just a bit beyond Cortina d’Ampezzo, or maybe Canazei for something a little bigger.