You’re in Spain so where’s the paella? I am sorry to disappoint you but paella is from Valencia and not endemic to the whole peninsula. Honestly, a good one is pretty elusive in Madrid. If you don’t know where to look, you’re probably going to end up settling for something that makes you question what all the fuss was about…
Never fear, paella worth eating can be found at Restaurante Los Angeles in the popular La Latina neighbourhood. Although it’s a Galician restaurant, they do an excellent paella mixta (chicken and seafood) and arroz negro, which is flavoured and coloured with squid ink. They also do arroz caldoso, a bit like risotto. The lobster one is divine! These are for a minimum of 2 people, but the size is extremely generous and could satisfy 3 I think.
Go with a group and share everything - start with some fried potatoes with a delicious cabrales blue cheese sauce. And don’t make too many plans for later; you’re going to need some time to digest!
Booking strongly recommended - it’s quite small.
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