Toledo

If you want authentic paella, Toledo is not your best option because it is so far inland. Try Bar La Boveda, just off Plaza Zocodover, for great, cheap sangria 9€ jarra and good sandwiches. Enebro in Plaza San Justo serves a plate of free tapas ranging from french fries to croquettes to mini pizzas with every beer or glass of wine -- check it out on Real Madrid game nights, where the place fills up with loyal fans. Closed Tuesdays. Meson de la Orza great food, great service, not so cheap, but it is worthy

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Budget

Another good Italian place is Mille Grazie, just off Zocodover. Lots of charm with exposed brick walls. Great pasta and pizza, and a very attentive staff. Fills up pretty quickly at dinner. Closed Mondays.