The Caracol (=snail) park is located on the way from Gramado to Canela, 7Km before Canela. The Caracol waterfall is the main attraction of the park. The Caracol river falls from height of 130m to a small pool that can be reached by 927 stairs going down hill (and then uphill, yay!).
If you're not in an athletic mood, there are 2 other options to view the waterfall. First - a cable car ride with a view to the waterfall from above. Second - Entering the Caracol Park and taking the elevator to the view tower.
This picture was taken during summertime while the hortênsias (hydrangea) blooms.
This is a short video showing the waterfall, cable car and tower:
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