When you walk from the main Christmas Market in Dresden towards the castle, on the right hand side – opposite the castle – is the Stallhof. The Stallhof is a courtyard surrounded by baroque former servants houses and stables. The Stallhof was also used for jousting. It is therefore big enough to hold one of my favourite parts of the Christmas Market – a medieval market. Showing black smiths, basket weaving, traditional toys and games, and even an open air bath-booth. You can buy fantastic old fashioned food.
Another awesome medieval Christmas Market is in Königsstein in the castle. I recommend the wild boar burger and hot met! It has open every Advent weekend.