I hate Connaught Circus and avoid the hassles associated with it. My preference is South Delhi BUT I have been in Delhi enough to not be interested in sightseeing. South Delhi is affluent and peaceful but far from the center and even further from places like the Red Fort.
Why don't you ask the hotel in Sacket about hiring a car and driver for the day, which can be much cheaper than you'd expect - but Delhi traffic is awful. Just don't go into any shops the driver suggests or let him come in with you. This is what I will do when I am back in January for a quick stopover. You will probably find the price of car plus hotel less than a central five star, and you won't be constantly hassling with taxi and other drivers who will rip you off.
The main downside of South Delhi is fancy restaurants at night.
If you do stay down there, go to places like the Muslim Victory Pillar and the madrasa that surrounds it, the tomb that was the model for the Taj, etc. There is also higher end shopping, if you want nicer things than tourist trinkets.
Please send me a private message if you want more info. I am not an expert but am your age and have been in India 6 times in 40 years. I am also adventurous and never do things like the HOHO bus.
Good luck!
Edited: 11 years ago