We have been graciously and generously invited to Cafe de Oriente, within walking distance to hotel, by Walid and Francette. Thank you both!
Lonely Planet : "The outdoor tables of this distinguished old cafe are among the most sought-after in central Madrid, providing as they do a front-row seat for the beautiful Plaza de Oriente, with the Palacio Real as a backdrop. The building itself was once part of a long-gone, 17th-century convent and the interior feels a little like a set out of Mitteleuropa." (We will be sitting indoors in its charming interior)