K12 ice upgrade

Hi all. Just got a 2006 k12 . Would like to upgrade the stereo to something I can connect to my phone and play music as well as making calls etc. Has anyone found a head unit to do this? Ideally one that will still allow use of steering wheel controls.

There are a few on e-bay for sale I think you would be looking for a 2 Din unit, the JVC KW-R520 CD MP3 Double Din Car Stereo fits the k12 Micra.;)
There are hundreds of different headunit's to choose from. The double din fascia's for the K12 are easily bought on Ebay if you don't already have one. Double or single I would go for a HU with "Android Auto" which is not to be confused with the various android head units which are HU's running the android OS. Android Auto uses your phone gives direct access to Spotify, Google maps, Waze etc, and much to my surprise it actually works perfectly, . Android Auto seems to be standardised to an extent, so if a HU runs it, it may be a bit faster on a more expensive HU but essentially you will get the same results. How much you want to spend is up to you, I would buy decent second hand personally.

Some Android Auto head units will need to be connected physically every time you get in the car, some connect over wifi or whatever. For the Iphone people, generally Android Auto HU's will also have Apple carplay which I assume is broadly a similar setup.

One caution, I needed to shave a bit off either side of my HU (which I thankfully bought cheap-ish used) to get it to fit in the standard double din hole. Thats all just fiddling about though.
Have you thought about keeping it stock and just plugging a bluetooth FM transmitter into the lighter socket? I've done this for years and it works great, and only costs a few quid. Sound quality is perfectly acceptable to my ears, and my family will tell you I am the first to complain about bad sound.