3 hour stay in Towadako or Yakeyama?

We will have about 3 hours mid-day between busses coming from Aomori and continuing to Hachinohe.

We could get off either in Yakeyama or Towadako. Which would be more interesting? I was thinking about a stroll along Oirase stream from Yakeyama and then have lunch in Yakeyama before getting back on the bus.

Or what could we do in Towadako in about 3 hours? Any recommendations? Is Towadako a nice town?

You're not giving yourself much time, but if you're taking the Aomori-Towadako bus anyway, it runs right through the Oirase valley and even slows down for the waterfalls. You could ride it up to Towadako, look at the lake, ride the ferry to Nenokuchi, and catch the Towadako-Hachinohe bus for Hachinohe if you time it right.

Check your schedules to see if you really want to cut it that close.

http://www.jrbustohoku.co.jp/english.html