Malpensa
 

We are arriving in the late afternoon at Malpensa. We didn't realize how far it is from Milan. We don't necessarily want to go into Milan and are heading towards Ravenna and then down to Tuscany. Any suggestions of where (area as well as hotel) we can stay that first night? Does it pay to go into Milan? Is it possible to get to Lake Garda or some other smaller interesting city?

It certainly wouldn't make sense, or even be possible, to get to Lake Garda. When persons traveling through Milan want to stop overnight near the airport, I always recommend going to Arona, on Lake Maggiore just a 30 minute auto, taxi or bus ride from the airport. I wouldn't recommend Milan for a one-night stay. In Arona, try the Hotel Concorde or Hotel Giardino. There are several nice restaurants in Arona also. Arriving in late afternoon, you probably shouldn't plan to go very far for the night. Good luck.

If you are picking up a car at Malpensa, then it probably wouldn't make sense to spend the night in Milan. Parking is not easy there. If I were getting a car at Malpensa, depending on the time of day, I might stay at one of the towns on Lago Maggiore or Lago D'Orta. We just returned from the area and I have to warn you that both Lago Maggiore and Lago D'Orta were inundated with "zanzare" (mosquitos), which made going out after dark rather unpleasant.
Since you are heading toward Ravenna, you might consider spending a night in Bologna which is along the way. Bologna is not on the tourist radar screen but it is a beautiful city with great food.

I agree with rbrazill, bologna is a very beautiful city. Maybe you can sleep there and do some sightseeing in the morning before going to Ravenna. I was there very little time (2 hours) but I loved what I saw.

there are frequent buses from Malpensa to Stresa (Lake Maggiore) and Como (Lake Como), two fine fine towns on fine fine lakes - about an hour from the airport.