3 nights in Madrid + 1 night in Toledo V.S. 2 nights in Madrid and 2 nights in Toledo?

Are you really wanting to do this by car?

Anyway if food is the main criteria, then Madrid is the better choice. Though in practice you don't have many meals in either, so I wouldn't worry you will run out of decent restaurants whichever you choose.

I agree with Nick, you may want to potentially reconsider having a car in Madrid and Toledo, difficult to find good parking, very narrow streets in Toledo, traffic jams in Madrid etc. In Toledo one always sees tourists denting/scratching up their rental cars (myself included😢) trying to navigate those narrow inclined streets!

All the things on your itinerary can be easily done via public transportation. Consider renting a car only at the end of your Madrid/Toledo visit to drive to Granada

Thank you for the reply! We'll park the car at wherever we stay, and tour the city by foot and public transportation.

I'd go with Toledo. There's good food everywhere in Spain. In Madrid go to the San Miguel Market to graze, maybe for lunch. Everyone will be able to see and choose what they want. Or you could buy stuff to take in the car for Segovia.

In Madrid, instead of or in addition to one of those places that might bore kids to death, consider the Naval Museum (golden age of exploration) a couple long blocks up the road from the Prado. You need to show passports to enter because it's run by the Navy.

Another vote for going from Segovia to Toledo. The drive isn’t that long, so maybe drive over to Avila for a short stop, or, visit San Lorenzo del Escorial and/or Valley of the Fallen. In Toledo, there is a fairly large parking lot on the side of town by the Roman Circus and Alfonso VI gate. Don’t try and drive in the historic center as there is no parking. If you spend the night in Toledo, Hotel Maria Cristina has its own parking garage. From it, it’s about a 10 minutes walk to the historic center. No need to walk up the hill. Take the escalator.

Thank you! 2 nights in Toledo then! Thank you all!

A couple of questions. You mention that you are starting in Barcelona, to Madrid to Segovia to Toledo (in five days) and on to Granada, then to where? Do you plan to return to Barcelona after Granada? Are you both entering and exiting Spain through Barcelona? If so, the distance is quite extensive and you will spend lots of time on the road. You said you are driving but I imagine you may be taking the AVE train from Barcelona to Madrid. You seem to have too few days to do everything you are planning in your day by day breakdown, especially with young kids. Can you begin in Barcelona and end in Madrid? Then go Barcelona, Granada, Toledo, Madrid and Segovia as a daytrip?

In Madrid your kids might like El Retiro Park, right behind the Prado museum. I think young kids will like Toledo and Segovia more than Madrid.

After Granada, we'll go to Ronda, then Sevilla. We will not return to Barcelona. We'll fly to Paris from SVQ ( the airport in Sevilla).
I just booked the train from Barcelona to Madrid, then we'll drive and return the car in SVQ.
Thank you for the recommendation! We'll check out the park for sure.