J.F.
Southern Indiana has several very pretty places (even in the drought).
Santa Claus, Indiana has Holiday World Waterpark. There isn't much else in the town, but definitely worth staying 1-2 days.
French Lick, Indiana has a BEAUTIFUL resort & casino, train station, some cute shopping, and another hotel/waterpark (Big Spash Adventure).
Near French Lick is the Hoosier National Forest. There are a few lakes in the area. Very pretty.
Bloomington, Indiana has Lake Monroe. About 30 minutes from there is Brown County State Park (beautiful), and lots of very quaint shopping in Nashville, Indiana (can easily spend a day walking the shops).
In the middle of Indiana are two other very nice state parks. My favorite is Turkey Run. It has a suspension bridge that goes over a creek/river, and lots of really nice, designated trails with maps. The best trail is Trail 3. You literally climb up ladders, and through running water down limestone crevices. FUN and muddy! They also have horseback riding, and a swimming pool. The other park is Shades. It is isn't as traveled as Turkey Run. These are near Crawfordsville, Indiana.
I would skip Indiana Beach. It's kind of a run-down amusement park/waterpark off of a lake. I haven't been back in a year, but used to go all the time when I was a kid. We were disappointed last year.
Dunes State Park is in northern Indiana. It is off of Lake Michigan. It makes you question where you are!!! You'd also be close to Chicago, and could visit the aquarium and museums.
Bowling Green, KY has Mammoth Caves, and a train museum with a handful of train cars that they give tours through. There are also a handful of independent caves in the area of KY through southern Indiana.
I hope that was helpful!