From the center of Mali Lošinj we go along the bay coast towards the NW. You pass the road, deterring towards Čikat bay, but on the next crossroads it's worth deterring from the coast. You go some 100 m towards Čikat, but then deter right again and follow the marked path on the panoramic Vela Straža summit, 62 m.
From Vela Straža you descend again towards the NW (keeping left), so that you reach the coast of Lošinj bay again. Then simply continue around the peninsula tip and follow the coast southwards. You pass Zlatna uvala (cove), Srebrna uvala and then around Čikat peninsula enter the bay of Čikat.
From Čikat you keep following the coast. On the Madona peninsula there's a small church and a restaurant. Then you continue into Veli Žal (cove) - a big hotel there - and then continue past Borik, Porta Šešura to Cunguski cove. There the broad path, appropriate also for biking, turns into a narrow, marked path, suitable only for hiking.
The following coves are more solitary, on the beashes and on the path you will meet less people (depending on the season). Mala Draga, Vela Draga, Sunfarni and Krivica are all true marvels. From the shady Krivica you could continue towards the SE and start your return in any of the following coves. But the recommendation here is to ascend the main ridge by deterring from the coast in Krivica.
A nice path goes up through dry walls, more or less in the northern direction. It is well marked. After gaining good 200 m of altitude you reach the asphalt road which goes from Mali Lošinj just by the top of the ridge. The church of Sv. Ivan is just some 150 m to the left. Nice place and great views around from there!
From Sv. Ivan you tahe the marked path down into Veli Lošinj town. It descends by the once more cultivated country directly into the picturesque port.
From Veli Lošinj you best follow the coast path (lungo mare) towards Mali Lošinj. You pass two north oriented coves and finally reach the first houses of Mali Lošinj. The center of the town is of course on the other side of the hill.