Where should I began to look?

Cuenca sounded like the place to start but I really don't want to live in that weather.

My husband and I are looking for: 
60-80 degree weather
small town/village
perhaps near a river
we only speak minimal Spanish, but currently working on that.
we can be minimalist (I don't mind squatting in the woods or having to wash by hand).
we enjoy peace and quiet

We should be arriving in October to began our search for the perfect place.  I just wanted a heads up on where to begin.

Kayana 10
Check out Loja, Vilcabamba, and Paute.

Good luck with your quest. I'm sure there are a lot of places in Ecuador that fit your temperature requirements. All of the places I listed above are at a lower altitude than Cuenca but I can't say that they are low enough to meet your temperature requirements. I know there is somebody on this list who lives in Loja. Look him (her?) up on the main thread list. There are gringos in all three of the above cities. You should know that the sun is very hot when it is out which is most of the time. In my opinion, it is rude not to make an attempt to learn the language of one's adopted country so I applaud you for that. The people of Ecuador are very kind and will tolerate a great deal of Spanish mangling and struggle to understand you and be helpful. They will appreciate your attempts to to use Spanish. Use what little you know. If you are trying to learn, you probably don't need to worry too much about the language issue at least in the three cities above.

I wish you much success in your quest, Ron

thank you so much Ron.

Notice real state in Vilcabamba is very expensive. And far away from important cities, so if you have an emergency you can be in trouble.
Paute is a small nice town close to Cuenca and really cheap, I did a moving there for a expat couple and they get a nice house for less than $200 a month.

Both towns are really quiet.

Look at this on:, Vinces. I didn't visit this town but it looks interesting, probably there is no expats there.

Vinny

There are also some great towns surrounding Quito but I feel they may be swallowed up soon by the expansive growth here in the city.  We are truly beginning to sprawl out here.

Mike

thanks to you both, Mike and Vinny.  Loja sounds great but I can't find a lot of info regarding Paute