Check out my trip report, it might help:
https://community.ricksteves.com/travel-forum/trip-reports/spain-clean-toilets-affordable-lodging
My take:
Consider the first day a "get over jet lag" day. This is a good day for walking (maybe the Ramblas and beaches of Barcelona).
Madrid is my least favorite city in Spain. You don't say when you are going. In summer, Madrid will be more comfortable than Andalucia and the green spaces, such as Retiro Park, will be in full swing. Other than that, the only must see in Madrid is El Prado. I also liked Temple Debod (moved from Egypt) and was interested in the Naval museum, but there is little history in Madrid, no old center, and - apart from various museums - not much else. The Cathedral and nearby Royal Palace are both skippable (the worst I've seen in Europe). There may be good food in Madrid, but we didn't find it - we went far and wide and found overpriced meals that weren't very good. The best food we found was at the Bull Bar in Plaza Mayor - but saying it was the best is damning with faint praise.
Toledo, on the other hand is really nice. I'd give yourself a full day there and stay two nights (you will get a nicer room and better food, all at a lower price).
Valencia IMO is too far for a day trip from Madrid. I'd go to either Segovia (or rent a car and visit both Avila and Segovia in a day). I think your wife would be inspired by the wall in Avila and the aquaduct in Segovia. Again, stay a night away from Madrid. There's no sense paying the highest prices in the country (probably tied with Barcelona) for rooms if you aren't spending the day in Madrid, you will enjoy a night in a smaller city much more.
Two nights in Ronda is fine. I think the sights are worth a half day. If your schedule is tight, Ronda can be reduced to one night (which reduces your sight-seeing time in Ronda from a full day to about a half day). But it's never a bad idea to avoid one nighters in your itinerary.
Sevilla can be either a lot of days or just a couple. I like Sevilla, but we visited during the April Fair and had a packed four days. If you're visiting outside April, you could reduce Sevilla to a full day (two nights) to visit the Cathedral, Alcazar and walk the surrounding quarter. Your two nights should include a flamenco performance. If during the season, and you're interested, a corrida (bull fight) could be another evening activity. The Plaza de Espana are nice enough gardens for a stroll. They're only the sight of an expo - no historical significance at all - and can easily be skipped in favor of better places (including the nearby Roman ruins or a day trip to Jerez).
Cordoba makes a nice day stop using the fast train between Madrid and Sevilla. The sight to see is the Mesquita and surrounding quarter. We skipped the Alcazar (on Rick's advice). We stayed one night which allowed us to stroll the old quarter without the normal daytime crowds.
Two nights in Granada isn't enough. The sight is obviously the Alhambra. It's equal to two major sights and takes nearly a full day to see. There are enough other sights in Granada to justify at least another full day, so plan three nights minimum.
Don't train Granada to Madrid. You are better off to plan Barcelona first, fly to Granada (this stretch is very inconvenient by any other mode). If Valencia is something you really don't want to skip. Rent a car out of Barcelona and stop in Valencia while driving to Granada. Alternatively, take a bus. The buses are cheap and will get you there as fast or faster than the trains. They're like charter buses. Each bus station has an English speaker in an information kiosk that will help you sort out your options and book your ticket. This area isn't well served by train.
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