sel recommends Toledo and I couldn't agree with her more. Check out the growing thread " Visiting Chinchón? " for information about that near-to-Madrid town. There's also Segovia which I highly recommend too but it's just a little further than Toledo but not by much.

(why do I imagine dangrmous running screaming out of Puerta del Sol in Madrid for Toledo like a man with his hair on fire???!! hehehee...)

Have fun! Saludos, MadridMan