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I've camped at Mt Buffalo and it is very nice. There are plenty of walks for the day (though I don't think you can mountain bike). The camping ground is pretty good and there is a picnic spot just near the camping area and next to the lake you could use. Its mostly sheltered from the lights in the campground and has picnic tables you could put your gear on. There are too many trees to observe from you camping spot. When I was there in February the skies were great.
The only issue is that you have to book ahead at busy times and so you may not get in at short notice.
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