Low-budget trips to Madrid

Ummm, originally this topic contained more questions about hostels etc., but I have made a quick decision (without the help of TT! Go me!) and have already booked flight & hostel. So only a few questions remain.

I am going to stay in Madrid at a cheap hostel (I'm paying €70 for four nights) between March 25th and 29th. Flight is with Vueling. I am not sure if anyone cares as I am flying from Barcelona, so it is probably not of interest to anyone on TT, but anyway, Vueling do relatively cheap flights (generally in Spain, it seems a good alternative to Clickair, another cheap Spanish airline, especially because Clickair do not fly to Madrid): in total I have paid €85.96 for the round trip BCN - MAD (incl. all fees).

If any of you have been to Madrid before, maybe you could help me with a few questions:

- Is there anything going on in Madrid between March 25th and 29th (like for Easter)?
- What do I simply have to see? What is overrated?
- Any insider tips on where to eat & drink (preferably cheap-ish as I am traveling on a tight budget)?

Any advice would be helpful. I have only been at the airport in Madrid so far, so I am absolutely unfamiliar with the city.

Thank you!

can't actually remember many specific sights I went to in Madrid, but just a few ideas (but I'd guess nothing that wasn't already on your list):

The Prado has some abolute gems - Bosch Garden of Earthly Delights, Velázquez Las Meninas, Goya..
If you're into Art Nouveau, the Casa Palacio de Longoria (from the outside)
Plaza Mayor is great for people watching - get a coffee and sit for ages. There are loads of musicians who set up and play there

I loved the hot chocolate which is served in all the cafés.
Eating out is, if I recall rightly, not cheap,but you can pick up small things in lots of places, like large sandwiches filled with very tasty ham or cheese in one of the Casa de Jamón

What I enjoyed most about Madrid was just wandering around the streets in the different suburbs..each one has its own character, even without specific sights. While Msdrid is not as exciting archtecturally as Barcelona, I was very pleasantly surprised and did find it visually appealing.

The Prado, Reina Sofia, and the Royal Palace. Those are the three things that I would see first. It's been 11 years since I've been to Madrid, but it is one of those places that I've always wanted to get back to...I fell in love with the place.

I'm drunk right now, so I might respond better later. ...but those 3 things are a must, no matter what your budget.

Make sure you visit Caixa Forum Madrid and then tell us about it, it was inaugurated only ten days ago.

It was designed by Herzog & de Meuron (of Tate Modern and Allianz Arena fame, among others), reason enough to see it if you're interested in architecture and design. Better still, it seems that in March you'll be able to see "45 religious paintings from Florence's Uffizi gallery including works by artists such as Botticelli and Luca Giordano, many of which have never left Italy".

El Rastro is a flea market running every Sunday. Plenty of culinary alternatives in the area and as many people enjoying as the weather allows.
Old city centrer, of course, anytime.
Just above the latter (further north, that is), Chueca for fashion and Mlasaña for old=style nightlife.

Thanks guys! I just now saw the replies. I will not actually be there on a Sunday (Tue - Sat), so the flea market is not an option, but I will keep everything else in mind. The low budget was more about the food, I do know I'll have to spend some money on entrance fees. Luckily I can usually get a discount as a student because many places seem to be expensive.
I have not really made a list of anything so far, so I will have to read up on what you guys suggested, but thanks already!

Is there any food that is Madrid-specific? The hot chocolate you (ruapehu) mentioned is just that thick Spanish hot chocolate that you dip the churros in, right? Or is it specific to Madrid (i.e. different from the one cafés here in Barcelona serve)?

Ok, as requested
Try the bocadillos de calamares, they are great. Even if you don't like seafood, have one.
The hot chocolate is the one you eat with churros, that's more or less Spain-wide. Go to Churreria San Gines, in Pasadizo de San Ginés very close to the Plaza Mayor. If heaven exists, they serve this chocolate there!!!
Go eat chicken with sidra at Casa Mingo (Paseo de la Florida 2, near Glorieta de San Vicente. Metro: Prícipe Pio)
Go to el Prado, parque del Retiro, la Almudena and Palacio Real.
An interesting thing to see if you have time is Templo de Debod, an egyptian temple which was brought piece by piece to avoid its destruction when they were building a dam or something in Egypt.
If you like football (soccer) take a tour in the Santiago Bernabeu.
You can go out at night to Chueca or Malasania. Chueca is mainly the gay district, but there are a lot of bars and discos for "normal" people. Malasania is a bit more alternative, but also nice.
Go to el Faro de Madrid, great to see the city from above.

That's what I can remember for now.

cute - you been doing a creative writing course Panama?

LOL, it's all this writing simultaneously in spanish, english and german. I can't chew gum and walk at the same time.

Edit: and you didn't read fast enough to see that they were building a damn in Egypt.

Thanks Panama. I think the probability of me eating calamares is not much better than that of me eating lamb brain. No matter how good you say they are.

I suppose you keep getting stuck in the same place - guys aren't known for their multi-tasking abilites

Madrid's cuisine as its culture and people is a mix of the various Spanish regions'. Churros, which are slightly differently prepared in every one of them, are arguably best there.
On average, eating out isn't more expensive than say in Barcelona or Munich but being a bigger town, the range on offer is wider in every sense: price, quality, variety... In some places, a tapa is freely provided when ordering beer or wine. Breakfasts are usually cheap, consisting of churros or porras (like a longer, thicker, rolled churro with no sugar which is cut in shorter pieces), orange juice, cofee and/or chocolate.

Oh and I forgot, you should also try a good cocido madrilenio. Ohh, I should go soon over there!