Inaki Camba, the charming chef at the Basque restaurant Arce, has quite a unique way of preparing meals. He himself comes to the table and asks forty questions about what you like and might want to try, about your preferences for ingredients, preparations and wines. Among the 18 courses he served us, we most fondly recall a foie with a 2001 Sauternes, Chateau Lamonte Violet. Very little if anything had been done to it: a bit of salt and a drizzle of oil. Hake cheeks also stood out as did the lovely flashfried sweet green chilis - pimientas de pedran de Galicia - that were just last week still in season. A bite of quail reminded us of ortolan; a tad too-sweet melon soup with Serrano left us cold. Maybe we'd been too fond of the Agush Taello Mata Reserva Brut cava - of which they poured us about 4 glasses each - to remember much else unassisted and unfortunately copious notes took were in a notebook we unfortunately lost. Why we never have trouble recalling wines remains a mystery: we enjoyed both a 98 Guigal Condrieu and a 94 Dapmau Reserva Rioja, though neither matched the food all that well. CQ recommends a visit; 50 Euros each for lunch seemed a deal.
Arce, Augusto Figueroa 32, 91-522-59-13
Even Keith McNally would be hardpressed to recreate the ancient, authentic, smoke-stained vibe of Madrid's La Venencia. A bar that serves neither beer nor vodka, La Venencia's singular beverage available is unlabeled Sherry and by god is it delicious. We love to drink fine fino in Spain, but haven't been convinced that it travels well as in our experience it's never quite potable here. Sherry, English for Jerez, is of course the Andalucian town where sherry's made. But it was only in the throes of its embrace at La Venencia that we learned that sherry (and Jerez) have their etymological roots in the originally Iraqui / Iranian or Mespotamian grape, Shiraz. We'd strongly advise visitors not to miss La Vanencia's incredible lomo, cured pork loin, but the mojama, cured tuna, seemed a bit salty. Next stop, same block: Los Gabrieles for about more sherries and canas, or beers. You can then head out to the Kingston, Sweet, the Factory and Bamboo (were there others?) well past dawn.
Madrid's literary cafe El Gijon, should you drop by, is fine for drinks but we'd not recommend the food. Tis however just a short jaunt to Bardemcilla, where though he's not likely to appear, you can bet the owner, Spain's sexiest actor Javier Bardem has cooled a spell or two. 
The one restaurant we really loved this trip was Taberna Cazorla on General Pardinas, an Andalucian tavern run by 3 brothers who send gorgeous tapas out with each drink. First arrived a chistorra, chorizo-like fat lil sausages with yet more of the delicious green peppers - pimientas de pedran de Galicia. Used to be these were a Russian roulette of sorts as most are sweet but occassionally a hot one strikes. They've become more highly bred and it's less common these days to get the spicy ones. Two of us shared a mixed fry of the world's freshest fishies, lightly battered and fried in gorgeous, fresh, clean olive oil that arrived so light and thin we wouldn't have been suprised to see them fly. The three kinds of squid on our plate include calamare, chipirones and chopitos; also, cigalas and baby clams as well as baby dover sole. A delicious steak served on a toast smeared with evoo and tomato guts drew high marks all around. This is the place I'd eat daily if I were to move to Madrid. 30 Euros for all of us, food and drinks included seemed a steal.
Cervantes, Velazquez, Goya: though it may well have invented Modernism, Spain has also cradled the reactionary Catholic stronghold Opus Dei, itself something of an extension from Isabel and Ferdinand's fifteenth century rule. This is but one example of why contrarians consider the country the Capital of Contradiction 
