Two 3d-4f nanomagnets, [Dy(III)2Cu(II)7] (1) and [Gd(III)6Cu(II)12] (2), are synthesized under a two-step in situ reaction of picolinaldehyde. Not only the final adduct (hemiacetal), but also the intermediate (gem-diol) are "visualized" by X-ray single crystal diffraction. The Dy complex behaves as a single-molecule magnet, while the Gd complex exhibits a significant magnetocaloric effect. Theoretical calculations are employed to obtain the orientation of the magnetic moments and the magnetic exchange.