For dinner in Chueca (Chueca metro station, L5) we recommend starting at El Cisne Azul (C/ Gravina 19). It's a dive bar if there ever was one, but their mushrooms are spectacular. Order a Boletus combination (15€) and a glass of red wine (2,50€). They also have Boletus with yolk, which is also very good, though truthfully the mushrooms are so good you don't need to mix them with anything. If you want to stay for dinner, the tomato raft with tuna belly (12€) and the black pudding and rice with caramelized onions (12€) are also very tasty. Bring cash, as they don't accept credit cards.
If you're looking for something more economical, you can always go to El Tigre (C/ de las Infantas 30): for every draft beer you order (2€) , they give you an enormous tapa (croquettes, omelette, cold meats, paella, or whatever the chef feels like preparing that day!) for free. Get there early because they fill up very fast.
After dinner, you can stay in the area for drinks or go to Plaza Santa Ana or Calle Huertas, where you'll find a lot of local atmosphere. You can walk there (15 minutes) or take a taxi (10 minutes, 6€).
