The ruamel.yaml package was specifically enhanced (by me starting from PyYAML) to do this kind of round-trip, programmatic, updating.
If you start with (please note I removed the extra initial spaces):
init_config: {}
instances:
- host: <IP> # update with IP
username: <username> # update with user name
password: <password> # update with password
and run:
import ruamel.yaml
file_name = 'input.yaml'
config, ind, bsi = ruamel.yaml.util.load_yaml_guess_indent(open(file_name))
instances = config['instances']
instances[0]['host'] = '1.2.3.4'
instances[0]['username'] = 'Username'
instances[0]['password'] = 'Password'
yaml = ruamel.yaml.YAML()
yaml.indent(mapping=ind, sequence=ind, offset=bsi)
with open('output.yaml', 'w') as fp:
yaml.dump(config, fp)
The output will be:
init_config: {}
instances:
- host: 1.2.3.4 # update with IP
username: Username # update with user name
password: Password # update with password
The ordering of mapping keys (host, username and password), the style and the comments are preserved without any further specific action.
Instead of having the indent and block sequence indent guessed, you can do a manual traditional load, and set the indent values yourself:
yaml = ruamel.yaml.YAML()
yaml.indent(mapping=6, sequence=4)
with open(file_name) as fp:
config = yaml.load(fp)
If you look at the history of this answer, you can see how to do this with a more limited, PyYAML like, API.