Recommendations from The Times (London=4-18-03]

Madrid has a range of restaurants to suit frugal pockets. For hearty Castillian fare, try the Casa Marta (10 C Santa Clara, +91 548 2825), a converted tavern and tapas bar hidden up a side street. For friendly service, good music and delicious vegetarian food, head for El Estragon (10 Costanilla de San Andrés, +91 365 8982), situated near the -recently restored Plaza de la Paja. Alternatively, Elqui (18 Buenavista, +91 468 0402) is an excellent self-service vegetarian restaurant and arty hang-out. Main courses from €3.

Madrid is famous for one of the premier museums in the world, The Prado (Paseo del Prado, €3, museoprado.mcu.es), but visit on Sunday when it's free. Other cheap attractions include the Teleferico de Madrid (€2.80, free Wednesday), a cable car that spans the Casa de Campo. [...]
Where to stay: At €83 for a double, the Hotel Paris (Puerta del Sol, 2 Calle Alcala, + 91 521 64 91) is at the top end of the budget range. But it overlooks the spectacular Puerta del Sol, so book well ahead for a room with a view. The rooms are a little basic, but the fabulously grand lobby makes amends.

Sorry, that was the Guardian..... @ http://travel.guardian.co.uk/budget/story/0,12392,939464,00.html

Best,

Juan A.