Paseo de Recoletos and Paseo de la Castellana
The biggest concentration of terrazas is to be found up and down the grass strip in the middle of the Paseo de Recoletos and its continuation, Paseo de la Castellana. On the nearer reaches of Paseo de Recoletos are terrazas of the old-style cafés Gran (no. 8), Gijón (no. 21) and Espejo (no. 31), which are popular meeting points for madrileños of all kinds.
Past Plaza de Colón, the trendier terrazas begin, most pumping out music, and some offering entertainment - especially midweek, when they need to attract custom. They are extremely posey places, with clubbers dressing up for a night's cruise along the length - an expensive operation, with cocktails at €7 a shot, and even a caña costing €3.50. If you want to take in a good selection, walk up from Plaza de Colón for around 500m. Alternatively, take a taxi or the metro up to Plaza de Lima, where you'll find Castellana 99 - a fashionable terraza and bar that's open year-round. For some reason, most of the Castellana terrazas are known only by their (approximate) street number.

Restaurants:

Restaurante Botin
C/de Cuchilleros 17

Restaurante Pinchos Lounge
C/Nuncio 19

Fast Good
Calle padre Damian 23

El Pepinillo (tapas)
C/Barquillo 42

Cluny
C/ de Prado 12

Nightlife
Madrid nightlife is a pretty serious phenomenon. This is one of the few cities in Europe where you can get caught in traffic jams at 4am, when the clubbers are either going home or moving on to the dance-past-dawn discos.
As with everything madrileño , there is a bewildering variety of nightlife venues - all of which are covered, to some degree, in the area reviews following. Most common are the discobares - bars of all musical and sexual persuasion, whose unifying feature is background (occasionally live) rock, dance or salsa music. These get going from around 11pm and will stay open routinely to 2am or 3am, as will the few quieter cocktail bars and pubs .
Discotecas are rarely worth investigating until around 1am (the madrugada - early morning). Most of them pick their clientele through a dress code exclusivity and you may at times need to ingratiate yourself with the doorman. Being foreign, oddly enough, seems to make it easier to get in. Entry charges are quite common and quite hefty (€3.50-18) at discotecas (and some of the more disco-like discobares ) but tend to cover you for a first drink. Free entries can sometimes be picked up from touts in the streets, in tourist offices or bars. Be aware that many discotecas in Spain are fairly ephemeral institutions and frequently only last a season before opening up somewhere else under a different name, so it's a good idea to consult La Guía del Ocio or Metrópoli for the very latest information.
  
Flamenco
Flamenco underwent something of a revival in Madrid in the 1990s, in large part due to the "new flamenco" artists, like Ketama and Joaquín Cortes, who are unafraid to mix it with a bit of blues, jazz, even rock. The city has its own flamenco festival each February, when you can stand a chance of catching some of the bigger names. The club listings below span the range between purist flamenco and crossover experiments and most artists - even major stars - appear in them. Although the following clubs and cafés may open earlier, be aware that in many cases performances won't really get going until around midnight.

Café de Chinitas , c/Torija 7 tel 915 595 135. One of the oldest flamenco clubs in Madrid, with a dinner-dance spectacular. It's expensive but the music is authentic and the audience is predominantly Spanish. Reservations are essential, though you may get in late when people start to leave (at this time you don't have to eat and the steep entrance fee of around €25.25 does at least include your first drink). Open Mon-Sat 9pm-2am.

Candela , c/Olmo 2 tel 914 673 382. A legendary bar frequented by musicians - the late, great Camarón de la Isla is reputed to have sung here until 11am on one occasion.

Caracol , c/Bernardino Obregón 18 tel 915 308 055. The top names tend to appear at this venue which is popular with the young crowd, so it's worth getting here early. Flamenco is often mixed with jazz and blues; for pure flamenco, come on Thursday night (call first to check, as the programme can change). Entry €9 with drink.

Casa Patas , c/Cañizares 10 tel 913 690 496. Small, but very popular flamenco tablao that gets its share of big names. The best nights are Thurs and Fri. Entry €12. Open Mon-Sat 8pm-2am.

Peña Chaquetón , c/Canarias 39 tel 916 712 777. Fri nights only, but worth the effort; turn up early if there's a big name or you won't get in. Don't worry about the "members only" sign on the outside.

La Soleá , c/Cava Baja 34 tel 913 653 308. This brilliant, long-established flamenco bar is the genuine article. People sit around in the salon, pick up a guitar or start to sing and gradually the atmosphere builds up until everyone else is clapping or dancing. Has to be seen to be believed. Open Mon-Sat 8.30pm-3am. Closed Aug.