Last week my family and I stayed at La Pascana Hostal in Cusco. This friendly hostal is located on a pedestrian street right behind the Koricancha temple about two and a half blocks from the Plaza de Armas. We were pleasantly surprised by the concern and friendliness of their staff as well as the warm and eclectic ambiance. The rooms are simple but well appointed, ours had a sunny balcony facing the magnificent stone walls of the Koricancha. Beds are crisp and comfortable and two fluffy pillows are provided. A nice continental breakfast is included but you can order eggs any style for less than $1. Rooms have phones but no TV which I personally did not miss. There is one computer for free Internet access and laundry service is provided for less than $1 per pound. It is definitely a great place to stay and very good value for the money.