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.
The most effective letters of recommendation are written by professors or work supervisors who know you well enough to describe your academic, personal, or professional achievements and potential with candor, detail, and objectivity. Letters that compare you to your academic peers are often the most useful. Most schools do not consider general, unreservedly praiseworthy letters helpful.