First trip..first two stop Madrid and Barcelona itinerary..help

love your itinerary. seems well planned out and makes sense to me. for the best churros con chocolate in madrid...san gines. and for good tapas area, there is a neighborhood behind plaza mayor i think. i think the street is calle cava baja or something. go wander there and you will come across tons of tapas places. if time in madrid, i really liked the thyssen museum. collection of impressionist art.
the restaurant i liked in bcn was origen 99%.

Your itinerary looks good, although maybe a little ambitious given the crowds and heat.
A couple of suggestions to save money: Mercado San Miguel sells beautiful food but it is quite expensive. There are lots of restaurants nearby, find one serving Menu del Dia, then go to Mer.San Miguel to look and maybe buy a sweet for dessert. Museo del Prado is free from 6-8pm (Sundays 5-7)so you might want to switch your schedule to go there during those hours. You only get 2 hours but if you first research what you want to see you can see a lot. Since you're doing lots of museums you probably want to pace yourself anyway. Calle Cava Baja has lots of tapas bars, great for a "crawl". Remember that in Spain dinner is at 10 or 11pm, we usually just had tapas or a bocadillo around 8pm and skipped dinner. Barcelona--you can get lunch at Mercado La Boqueria (just off Las Ramblas), there are restaurants there of varying cost, but you can also buy bocadillos to take away, or bread, cheese, and fruit to make an economical meal. All over Spain you will find Menu del Dia offered for the afternoon meal, the price varies by restaurant but its usually the most cost effective lunch. Try to buy tickets for Sagrada Familia ahead of time/online, the ticket line is usually an hour long. Taking the elevator (separate ticket) to the top is worth it, unless you have fear of heights.

I know you are on a budget....but to only see the Exterior of Casa Batllo is a crime....as is its price of admission but its really really really worth it. My husband hates Gaudi. Hated La Sagrada Familia (he is your typical traditional hard to please New Englander, who found the Cathedral "tacky as hell"), was not impressed with Parc Guell, was please that Casa Mila was closed to the public for a special art project because it looked so "awful", but was marveled by Casa Batllo and full on admitted that it was his highlight of Barcelona. Just save a bit of money for it, eat ramen noodles for a few weeks, just do whatever you can to see it from the inside.

It is clear that you have done your research! Way to go. San Miguel - I agree it is beautiful to see, but expensive to eat. Look for one of the other restaurants in the area as noted by a prior poster. Or, if you must purchase at San Miguel, split what you get. Plaza Carmen is a 5 minute or so walk from the Metro station. When you exit the station, turn left and it is a couple of blocks down Gran Via. There is a long hike from your terminal to the metro entrance, but it can be done! I know!!! Plaza Mayor is great with the history that has taken place. The food there is more expensive than a block or so away -just to le you know. Park Retiro has a couple of outdoor cafes in it. Reasonable price and reasonable taste as well. One is near the "lake". Restaurant El Buxoon, a block or so off Puerta del Sol has a good platter of various meats at 18 euros...two can easily eat from it and have some left over even. The Prado is well worth the admission price. Be sure to take the escalators to see the Courtyard of the church that stood on the grounds. Ask for directions. It is behind the information desk by the restaurant. Be sure to see the armory at the royal palace. It is a separate building within the courtyard, and the palace ticket includes admission to it as well. Get the hand held listing device for the tour Check the admission times for the Palace...it has a habit of being closed!!! Enjoy your time in Spain.

excellent well thought out itinerary. You have left ample time to be able to "audible" any additions you may find worth engaging. All the prior posts are right on target. August is HOT! Stay hydrated! Madrid tap water is excellent, so no need to buy water. Have you already purchased your plane ticket to Barcelona? If not, then please consider taking AVE. Great way to see the countryside and lower stress than plane. Much more dependable and better use of your time. I would skip Ramblas, it is rife w pick pockets and offers little value (in our opinion) This costs money, but it is AIR CONDITIONED! Palace of Catalan Music (Palau de la Musica Catalana) Check it out and decide. Safe travels!