Bhaktapur (bŭkˈtəpŏrˌ) [key] or Bhadgaon bädˈgăˌŭn, city (1991 pop. 61,405), E Nepal, in a valley 4,553 ft (1,401 m) above sea level, surrounded by high Himalayan peaks. It is a processing center for the crops of the surrounding area; textiles and ceramics are produced. A religious center, Bhaktapur was founded in 12th cent. by King Ananda Malla as Khwopa, the capital of the Newar Malla kingdom. When the Gurkhas conquered the Nepal valley in 1768, Bhaktapur surrendered peacefully, thereby escaping their plunder. Landmarks include many ornate temples and the well-preserved palace (c.1700) built by King Bhupatindra Malla. The city is known as Nepal's "Cultural Capital" and is a UNESCO World Heritage site.