I recommend Malaga as well. We spent 2 nights there in 2017 and really enjoyed it. I think it's an under-rated city. We enjoyed the coastal ambiance and the historic and beautiful city center. There is lots to do in Malaga; visit the cathedral; walk uphill through the Alcazaba with gorgeous views of the Mediterranean; the Picasso Musuem along with other museums. We loved strolling along the promenade by the port and having drinks while watching the sun set.
You can take the ALSA bus from Malaga to Granada. It's only a 1.5 hour bus ride. The bus is modern, comfortable, clean, and air-conditioned.