For lunch we recommend going for tapas in the neighbourhoods of Santa Cruz and Arenal. Try one or two tapas in each bar, depending on how hungry you are.
Santa Cruz is the most touristic neighbourhood in the city, so be careful when deciding where to eat. Calle Mateos Gago is the liveliest, though we recommend going a venturing a bit deeper into the neighbourhood and giving Las Teresas (C/ Santa Teresa 2) a try. They have pleasant outdoor seating, though locals seem to prefer having tapas inside. There are a lot of tourists but the quality of the food is very high. Don't leave without trying the Iberian ham and "pincho de solomillo con bacon" (sirloin with bacon, tapas 3.50€, half portions 9.80€). Draft beer and house sangría by the glass (very good) 1.40€.
Very close the Cathedral, on the other side of Av. de la Constitución, is La Moneda (C/ Almirantazgo 4). While the entrance might make you think twice, don't hesitate going in. The quality of the products and the originality of the recipes are incredible. As regular patrons are fond of saying, the "garbanzos con chocos" (chickpeas with cuttlefish) are so good they bring tears to your eyes. The "pez espada a la manzanilla" tapa (swordfish n dry sherry) is also excellent. Draft beer 1.60€. Tapas 2.40€ each.
A stone's throw from La Moneda is Bodeguita Romero (C/ Harinas 10). The "pringá" (traditional Andalusian meat dish, 2.50€) and the "tortilla de camarones" (shrimp omelette, 2.10€) are to die for. A beer costs 1.50€.
After eating, we recommend you have a coffe (2€) at Alfonso XIII hotel, an architecture wonder from outside as well as inside. It is in San Fernando Street 2, almost crossing with Av de Roma (10min walking from the last bar).