Don’t exaggerate -- show where and how they can improve. Don’t put the candidate on a pedestal. Not only does it not look plausible, it will also set expectations for them that will be next to impossible to meet. If they have an Achille’s heel, don’t exaggerate it, but don’t hide it, either.
Then, explain how you know the person and why you’re qualified to recommend them. Include specific examples of the person’s qualifications and successes in the body of your letter, then end with a sentence affirming that you recommend the person for the job or position.