Ok, here I go:
It's going to be a long post, that's why I had to have time enough.
Chicagoan:
Sorry for not posting when I promised, but I was a little ill and had a real mess home, plus the damm*d jet-lag.
Unlike Lima, Cuzco is fairly safe. You don't fear for your personal integrity in Cuzco unless you get in very very dark alleys.
Your wallet is another matter, I had no problem but I took my precautions (my trousers belt can be filled with notes).
I walked
downtown Cuzco at nigtht several times. Nothing happened and I felt safe.
Yes, there is swarm of shoe cleaners, and one of them, from whom, out of charity, I took his services, tried to charge me 10 soles (1 $=3.5 soles) although we had agreed (and the standard price was) 1 sol. He looked very pissed off when he saw his conversation didn't make me be more generous, and he refused my money until I menaced with leaving and he was a little nasty (he was about 8 ), but didn't try to pickpocket.
I have tried guinea pig several times (or hamster or cuy), it's a little tough but tasty. I found it similar to rabbit, but not too similar.
There are plenty of bars around the Plaza de Armas, but they are frequented by foreigners, a couple have salsa , but very few in that area have local music. But not very far, in the main avenue, where all the main banks are, along with the euivalent to the "Federal Reserve" delegation, and close to Koricancha church and museum, there is a not-so-nice looking installation (once inside, it was a theatre), dedicated to regional dance and music, where you pay 20-25 soles for a rather short but well presented and varied folklore show. I think it was called Centro "Cosco".
I didn't go to any church, but I don't think you need to dress conservative, at least when touring.
As everybody will tell you, you only need ONE day to adapt to altitude, but you need to take it super-easy the first day, and drink lots of coca tea. Machu Picchu is lower (2500 more or less) than Cuzco (¿3202? ¿3400?), Aguas Calientes maybe 500 less than Machu Picchu. I was never sick or nauseous.
I recommend Sacsayhuanmán too, and, since you have spare time, you may want to buy a ticket that allows you to see three more sites all in the outskirts of Cuzco for ¿20 soles?. A guide is cheaper if brought from outside the ruins instead of hiring the ones approaching you there.
The way to "chew" coca leaves is not exactly chewing them. You have to put them in the palate, humid them with saliva (they are dry), and let it be there, swallowing the juice the produce.
Rafael, my peruvian friends wouldn't agree that the economy is booming. One could say that that is because they are the common people whom the bonanza doesn't reach, but some of the people I met were small bussines owners who also suffered the economic climate. One of them downsized her firm form 6/7 people to two: herself and a helper. It seems that only big firms make big bucks in Peru nowadays, and those who have good political relations, like elsewhere.
All the peruvians I spoke with were really fed up with Alejandro Toledo, the differences were about who was to follow.
Now, my trip:
I left (Madrid-Lima) with air Europa, through Caracas and Bogotá (this part was outsourced with peruvian line Aerocontinente). Trip was average/good but looooong.
Air Europa average/good, Aerocontinente just average.
When you arrive to Lima airport, the taxi drivers often try to charge you 30$ for any urban movement form there. Usual price 20-30
soles may be 40 max., being generous AND opposite side of the city. Well, you are not taking them... I did, but I was well informed.
I reached a friend's family house, and planned to stay there for a night and leave for Cuzco or other destination (Puno, Trujillo, Iquitos, Arequipa, ...) but everybody warned me insistently about the unsafety of the streets, up to the point that, if I wanted to leave the closest area, any of the men escorted me, and in the night even
within these safer areas too. In the daylight, I was allowed to move in the
safer area with the only escort of any of the children not to get lost, and leave it without noticing. !!!!
"Urbanizaciones" (don't know the word: ¿condos?) had the outer entrances walled, and these gates were opened often in the daylight but at night were mainly closed, except those watched by "serenos" (night watchs). It's dangerous to be looking like you have money (they can guess by your spenditure, dressing or even your skin colour). Don't read EL comecio (the best newspaper) because it will frighten you.
Lima is huge: That's why the cheap (would-be) price of taxis can get more expensive, because, specially in rush hours, some routes maybe 1 or even 2 hours' long.
They were extremely nice and hospitable. I ended staying for three nights (two days) enjoying their hospitality, tasting the great foods, ..., but I saw very few of Lima except for a night my friend and I went out (he was working and we couldn't do it them all
) and I felt kind of a "paroled and supervised ex-convict" all the time I spent in Lima. Of course i don't blame this wonderful family but the security stance of Lima. They wanted to have me there all the time I was in Lima (10 days)!!! Saints!!!
I left for Cuzco, and I recommend anyone who doesn't have a previous reservation to take a room (only for a day, to try it, and after seen the photo catalogues) to reserve a room
at the airport because there is a lot of competence in the very luggage claim room between sellers in stands around the baggage area itself. Better prices than in the hotels.
Price wasn't exactly cheap for a 1h30m trip. I had the lower fare which was 64 $ each way (at the four companies consulted). Travelled with TANS to Cuzco (average/bad) and with LAN Perú (Chilean owned) back (average/good). Other prices for tourist fare: 80$ +.
You can have (there) a decent room for 15 $ + taxes (for the same hotel I was asked for 20$ (don't know if with or without taxes for I later re-negotiated it to "taxes-included) with breakfast: bread, butter, jam, coffee, ...
However, many of these two star-like hotels use an electric device to heat water in the shower that proved difficult to use, easy to fail, and (in Lima) it even shocked me a little (not so little) with electricity. Avoid this if u can.
Prices of taxis in Cuzco: cheap 2/3 soles most itineraries, 5 from the airport.
Food: Most restaurants for foreigners will give you a(n) (abundant) one dish meal with a beer and a tea for about 20 to 60 soles.
Peruvians use to go to their restaurants where they eat for about 5 soles + optional beer.
I had a meal (I wouldn't recommend it, hahaha) for 2,5 soles (about 70 cents. of a $)consisting of a soup (buagh!) and a reasonable "seco de cordero" (rice and lamb with sauce) and an unknown source homemade refreshment.
Water bottles and other products (specially those mostly demanded by tourists) were extremely expensive according to the national economy, anything imported was obviously more expensive, like oreo or nestlé products. Also books, cakes, ... Although if you look well, the delicious peruvian cakes (many with dulce de leche) can be found in much cheaper places than the most obvious tourist frequented streets. A therapeutic massage of null effect costed me 40$ in CUzco.
EDITED: The train to Machu Picchu was extraordinarily expensive for (about) 90 miles / 150 Km.: 60 to 90+ dollars. It was a rather old train, with no tunnels that justified big investments (to recover through price). There was a brutal price discrimination with the peruvians in prices. I did the trick to reach Ollamtaytambo by bus (1/30 as expensive as train at least), and from there on I had to use train, which costed 14$,
but 10 soles, 3$ to peruvians!. You
were required to show your documents when buying the ticket. I don't know why, but in the route back, the inverse route costed 30$ (¡¿¿¿???!). My peruvian friends paid 10 soles each or 3$ (1/10). The locals paid only 4 soles (1$). But the worst was that there was no tickets, so I recommend you to reserve both legs of the trip in advance, or you may have to travel standing, like I had to do, if you are lucky enough to board the train. I got without a ticket (in a turmoil of people) and paid ticket upstairs.
Te good thing (small) was that I paid only 10 soles, as a peruvian. I don't know if that was because they thought I was a peruvian or because they felt embarrassed to charge 30$ for a trip without a sit, standing pressed like sheep.
The bad thing is that the trip took 3 hours (should have been 1.5), and a pain in the back I had became acute and spoilt most of the rest of my holidays. They stopped some kilometres before reaching Ollantaytambo (where many people would get down) for about half an hour for the conductor to be able to ask everybody for the fare. If I had been sitted and my ticket OK, I would have felt furious because of these unnecesary delay, as I wasn't, I just felt I was going to have more of that intense pain for half an hour more.
I enjoyed also a the company of some teenagers pushing everybody, in that small space, and the vomit of another guy at my other side. At first we thought he was drunk, but he seemed to have been
just hungry, and so, weak. We fed him (unfed people is not common in Perú, maybe he came from the hills or he was suddenly short of money- like lost his money or was robbed, or something).
Machu Picchu/Aguas Calientes, very expensive, and always price discrimination towards tourists "officially". Lodging and food (15-20$) at least as expensive as Cuzco or more.
Going up from the village (Aguas Calientes) to the ruins (Machu Picchu)
costed 4.5$ for a tourist, 1,66 for a peruvian, for a maybe 2 miles/3 km. route. Even the peruvian price was generous! The same to go down.
To get into the Machu Picchu, yo must pay 20$ (peruvians only 10$). I had never paid anything like this to see ruins by far!
When you get out, many times it's about 1 - 3 PM, so you want to have lunch. Upstairs it's 22$. Or you can pay for the expensive bus (on foot you'd be down an hour later), and have food downstairs for 15/20 $(maybe 10 if you want an individual pizza or other cheap small foods).
Although we piled the bags and backpacks and took care the three of us of the pile, at any moment, somebody stole the guide's water bottle (hanging out of her backpack) and broke the upper part of my bag, taking a shirt. Fortunately, a pullover and other clothes pressed together protected my camera and other items, and he didn't have time to search for long. Results: Bag broken (nice bag, classy, ¡sigh!), old shirt stolen, and, what was worse, next day I was sunburnt in my arms and neck because I had no shirt, but only t-shirts.
Because of this, I
enjoyed also fever, that made the Cuzco chilly nights frozen for me.
and so on...
Some food is only for strong stomachs: hot sometimes, and also suckling pig steaks have a high percentage of grease, be careful. A friend felt ill beacuse of the food. I found it great.
I lost a credit card of a peruvian friend of mine, who had lent it to me because he was no longer using that account, to keep most of my money safe and at hand. I believe it was in a travel agency, and the girl didn't tell me it fell, so, she obviously took it, and I was worried that she could use it. Fortunately, she couldn't or, at least. didn't. It is not easy to use them, you know that to withdraw money you have 3/10.000 posibilities to guess the code, and they ask you for your documentation when you want to use it to purchase, in the credit card function even more than in Spain. I'd like to mention I never lost any card in Spain, because I don't need to change it's place (my wallet), whereas there a wallet is a call for a pickpocket, so I had to put it somewhere else (in my front pocket, with the risk of falling when extracting your money or passport.
I had problems also with my plane ticket. I thought I had lost it, but it came to be that I had hidden it in a secret compartment of my suitcase, and I couldn't remember where. I recovered it the day before leaving.
When I thought I didn't have my ticket, I tried to locate Air Europa offices, butr there was no record of any phone of that company in Lima. I went through the net, and spoke to Spain (home of the company), and they told me they had a Lima office that could issue a new ticket on pay of 18$. As there was no phone, I had to go there (Miraflores), and they told me I needed to buy a new ticket for a trip days later, paying 910€ (about 1000$), and that they would give me back in Spain (after my claim was attended) 700$. So, I had to pay 210$ extra! And I had also to cancel my reserve if I wanted my claim to succeed.
I believe this girl just wanted to sell a ticket, because in other trips I have seen copies like the one I wanted (in Cuba, I believe), of the plane tickets, for a cost like the mentioned 18$.
When I found my ticket, I was so happy... until I remembered I had just cancelled my reservation.
I had to wander again through Aerocontinente's offices (they has the outsourcing of the Lima - Caracas flight) and the internet and phoning Air Europa at Spain (closed in weekends in Lima) to make it again.
No matter that losing my ticket is my responsability (although I lost it because I had to hide it, because of the lack of safety), I found unhelpful and burocratic both AIr Europa and AeroContinente at Lima.
I love peruvian food, but with notable exceptions, I think qualities are better in Spain for the same level restaurants, and the cook is very good too, so, I was kind of deceived on what I hoped to find. On the other hand, I hate to admit that I could be rather biased, because a good jalea de pescado y marisco I had at El Callao, I didn't like it as much as in Spain, and then I learnt that the original one is made with animal fat instead of olive oil (the spanish version). Maybe I am not so free of taste prejudices as I like to consider myself.
In Perú, they dance salsa
too, but most discos mix it with other non-latin musics, which I don't like. The only real salsa disco I was at, was one at Barranco district, that I recommend
not to go, because they took my money and wouldn't let me get in.
We were a group of six, four entered at 3.30 am, we two went for a snack because we were hungry: salchipapa (slices of sausage and fried potatoes with sauces). The doorman made us show the six tickets all the same, although we told him some of us were leaving for a snack. We came back at 4.10, they said we couldn't get in after 4.00.
We told them nobody warned us, the ticket did
not have that restriction written, and the very same doorman saw our tickets at 3.30 and knew we were leaving and didn't warn us. No use.
They wwouldn't let us in. Then, I claimed my money, they said no. Then I wanted to see the manager, he was too busy and in an unknown area inside.
I went to the police to make a denounce for fraud, but they offered to take me to the disco and speak to the porter.
The porter was rude even to the police (I hear the owner has strong political connections), what made the police be more on my side. In the end, they let me in,
after having spent one hour arguing, and with only ten minutes of disco time. But I got in, what pissed them!
This is an example of how the rights of consumers are underdeveloped in Perú, be careful with this, and claim your rights. And, if it weren't because I was a tourist, I wouldn't have been paid attention by the police (my friends tell me, and I think so), and I wouldn't have entered the room at all.
Anyway, Barranco district is part of the best lima night. Go to Oita Nomá for Creole/folk music.
Still, I was glad to have it.
taken from the restaurant La Retama as well as the nighttime view through the window of the Plaza de Armas. 
. La Retama restuarant had a website but it seems to be closed now. The restaurant had a bar as well and it all looked quite nice and colorful.
. This is located JUST outside the city but higher in elevation. Bus tours are easily found in Cusco.