Home Sweet Home in Cuzco, Peru was comfortable, had hot showers, and had a delicious breakfast included in the price (which was small compared to most other places). The staff were very friendly and helpful and the views of the city were beautiful. You can not get there by vehicle and must climb many steep staircases to get there, but it is well worth it.

If you are looking for a cheap place that offers nice rooms and has a great breakfast included (pancake, eggs, bread, tea) look for this place!
It's a bit uphill, so you have to walk some stairs to get there (good exercise).
It's a quiet hostel, so don't expect a bar and lots of entertainment. It's basic, but clean and the owners are very nice and helpfull. I would recommend to all backpackers!

We've stayed quite a while in this hostal. Son and father working in this hostal are really nice and hospitable. They helped us out to call for a cab and to call the tour agency who was going to pick us up at 5 in the morning but they were a bit delayed. The rooms are spacious and the bathrooms are nice. It can get a bit cold in there during the night, but hey, thats Cusco!

Obviously a great view from the hostel, although walking up and down the steps several times a day can get tiresome. Hostel is very cold, with communal areas unheated and open to the outside through gaps in the windows.

Owner is very helpful and speaks perfect English, we booked a jungle trek through him which worked out pretty well, and the details of the trip were almost as described.

We had hot water about one third of the time.