We stayed in Riad Caesar for 5 nights in April 2011 and very much liked it. In a small, quiet alley just 5 minutes from Jemaa el Fna (the central square) this mid-priced Italian-owned riad has just 5 individually decorated rooms set around an elegant, cozy courtyard that features a small pool. It's not overly luxurious, but very charming with attention to detail.
The rooms are spotlessly clean with good bathrooms; showers, not baths. Staff was very friendly, reliable, and helpful. Breakfast, which is a little different every day, is served in the dining room or, if you prefer, on the courtyard terrace.
The rooftop terrace has lots of plants and shade and is a tranquil place to relax during the heat of the afternoon. The restaurant sells wine, which can be hard to come by in the Medina. Wifi is free.
On the whole, highly recommended.