My friend and I stayed here for 4 nights and loved it! The view of the entire city from the breakfast terrace is incredible. Its a few steps up to it, but its totally worth it!
The breakfast is great, pancakes, eggs, tea, orange juice and toasted bread.... exactly what you need to start the day to explore the beautiful city of cusco :)
The staff are amazing, the two woman that cook, clean and wash your clothes are lovely, and Luis and his dad (the owners) are awesome!!!! Luis speaks amazing english and is really cool!
There is even a huge wide screen tv where you can chill and watch a dvd....(they have hundreds to chose from).
The rooms are really clean and nice too, with a lock on the door, and the bathrooms always have toilet roll and hot water. It can get a little cold at night, but we were given a little plug in heater....amazing!!! Also there is free wifi and they provide towels. And even better its super cheap...11$ a night!
Ok so as you can see, we really loved this hostel and would highly recommend it, I have nothing bad to say about it......Definately stay and experience it for yourself!! :)

We stayed here for 3 nights to begin with and then an additional 4 nights after returning from Machu Picchu. The view from the hostel is amazing, well worth the steep climb up the stairs (it gets easier over time!).

Breakfast is great with pancakes, bread rolls, butter, jam, eggs and tea/coffee. It does get very cold though, as we could see our breath when breakfasting in the dining area/tv room. We had plenty of blankets and an electric radiator, but as June is mid-winter, we still needed our sleeping bags too.

Room 2 has dodgy electric sockets, which short circuited our room heater but the view was incredible. On the whole, the staff were friendly and helpful and it's a great place to stay.

Great hostel, the staff make an effort to take care of things. The room we had was small but had the best view in town, was clean, had loads of blankets plus a heater.
Breakfast is good, and you get that great view again while eating it.
The big screen tv and collection of dvd's available to use in a common area.
The walk up the hill is not that bad, and worth it.

Stayed there for 4 nights in total - first in single room, then in 4 bed dorm. beds are comfy (but in dorm is a downward slope, but magazines under lower end of bed help ;-) ) cold at night but plenty of blankets provided. Lovely sitting area overlooking Cuzco, staff very friendly and helpful. Great view from hostal and only short walk to city centre, restaurants, shops etc.
First few days had to stop every few steps on my way up the stairs to the hostal but gets better after a few days. Not all taxi drivers or people know the hostal so had to drag my luggage around unnecessarily, but owner Luis speaks english very well and is always ready to help in person or by phone if you struggle to make it there. Helpful advise and selling of tickets) for tours and busses. Nice breakfast provided also w egg, juice, tea, pancake and 2 buns. Hot water in shower. Well working Wifi plus computers for use.
Would definitely stay there again