Where to eat, drink and have a good time?

There are a lot of great restaurants on Huertas, you can't go wrong on that street. I went to a fantastic Galician restaurant there. It's very centrally located. My brother and sister-in-law loved the markets (mercardos). I took them to Mercado de San Miguel near Plaza Mayor and Mercado de San Antón in Chueca. Mercado de San Idelfonso on Calle Fuencarral is also great; you can try so many different things in the markets. 

Try the patatas bravas (potatoes in a red sauce), Spanish tortilla, and the jamón Iberico (Iberian ham)!

There are plenty of excellent choices in Madrid, a few of them are: Mercado de la Reina, Taberna Alhambra, Lateral, restaurante hegar and Taberna Los Huevos de Lucio. Try as well the ambience of Mercado de San Antón and Mercado de San Miguel, excellent "tapas", "paella" which are a must.