Have just returned from Madrid and discovered the Restaurante Platero just 50mtrs from the Hostal Persal (Espoz y Mina, No 20). Excellent Spanish country food including wine and liquors for under £30 for two. Seats about 30, both locals and tourists use it. Ramon, the proprieter and sole waiter is wonerfully welcoming and cant do enough for you. His wife cooks all the food, which is fresh. His daughters help out.
The chicken in garlic is superb. He does a marvellous flambed ice cream and does a very professional job of warming up the Congac at your table!
Had an evening at Botin's. Twice as much as the Platero but the food is special and the surroundings and ambience are unique! It was my Husband's 50th birthday and we ate down in the cellar - it was very memorable and good for a special occasion.

Pauline

[ 01-03-2002: Message edited by: MadridMan ]

This is a great site, thanks Madridman! We took the suggestion for Restaurante Platero and it is great! Ramon is a warm and inviting host, told us more that once he wanted his restaurant to be "su casa". Wonderful meal at a great price. Will definitely go back and highly recommend to all.
Right off the Puerto del Sol, down the sidestreet Espoz y Mina. Very easy to get to if you're staying at Hostal Peral, which we did.
I printed off the previous recommendation and brought it with me to give to Ramon - he enjoyed seeing it.
Another find is Salmon Do. Off the c/De Las Huertes on c/Leon. Excellent meal there, too. But for warmth and a wonderful host, Restaurante Platero is the best!