We stayed here in early June before heading into the Sacred Valley. It was recommended to us by the hostel we stayed at in Puno (Quechaus - great place - see review under Miskiwasi) and they got us a good price. The owners son met us at the bus station which was great but then wanted more (a pittance really) for the taxi than what they had told us on the phone. We were given a room downstairs next to the kitchen. It was a decent size with private ensuite although a little noisy as street frontage. The cable tv broke on the first day and despite talk they would fix it that didnt happen in the 5 nights we were there (and wouldnt move us to one of the other free rooms). Breakfast of coffee, juice and bread rolls was included but strangely others were being offered eggs and after 2 days of this we asked if we were entitled to eggs but they told us it cost extra - fine but just strange we were never asked. Sonia the owner gave us some good information and alternatives on getting to Machu Picchu which was useful but I got the feeling she expected us to book something with her. They have wi-fi which worked well in the common areas most of the time and also have some computers.
The bnb is very clean but the overall vibe just felt uncomfortable - especially in the late afternoons and evenings - you are not allowed to use the kitchen and it felt like they really dont want people hanging around the common areas - the grandfather would watch the place in the afternoon/evening and would turn all the lights off even if you were sitting there and even while the staff were working (washing plates or ironing) would turn all the lights off and the staff were left to complete these tasks in almost pitch blackness which was very awkward to witness (the cleaning staff seemed miserable!); he even came into out room to look at a problem and turned all our lights off while we were in there. When we decided to spend a few days in the Sacred Valley and MP we asked them if there was room available on our return - they continually told us they would get back to us and then as we were departing they told us they didnt know! but did let us store our luggage while we were gone. When we returned 4 days later they still didnt seem to know if a room was available and after sitting around 30 mins were told there wasnt but we could go to another one they knew (for more money) we decided against this (seems like a good idea reading the review below), they booked a taxi for us and told us how much it would cost and again when it picked us up it was more.
Also if you stay here note they will clean the room everyday which is impressive but they also went through our personal belongings and packed everything back into our suitcases which was strange. Lastly, like much of Cusco this place was cold especially in the common areas.
So all in all a good place physically but with some strange tendencies from the staff.

We spent 3 nights there whilst enjoying the delights of Cusco and before heading off for a night to Machu Picchu. We agreed that we would return to Casa de mi Abuelo for 2 nights after our trip and they were able to store our excess baggage whilst we were away. Upon our return the hostel was fully booked - even though we had arranged to stay again, so the owner took us down town to another ''one of their hostels'' - a hostel frequented mainly by locals visiting town. Allow basic it was acceptable and we paid Sonna, the lady from Casa for two nights accomodation agreeing that breakfast would be served in much the same fashion. We woke the following morning with the owner of the Miracle Hostel not knowing anything about breakfast and on the day of departure chasing us down the street and trying to grab our bags from the taxi as they had not been paid by Casa de mi Abuelo.

The hostel is lovely, the people friendly and accomodating but beware if they are full and try and relocate you. The location is not the best either - a good 10/15min walk from plaza de armis.

I had a very fluid trip to Peru and had only booked one night in Cusco. I enjoyed La Casa so much that I decided to return on my last night before my flight out. The location is convenient to all of historic Cusco, close enough to San Blas, and easily accessible. Nice big rooms and beds.

The staff are wonderful, they helped me find food, sorted out a big bill that I was not able to use. They rock!