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Your hotel is near Vaci UT(street) which is one of the largest pedestrian shopping areas in Budapest. I know that at the far north end is Café Gerbeaud which is a world reknown coffe house, but is always pretty packed. There are tons and tons of little coffee shops all around. Also on Adrassy UT there are some newer hip coffee houses. Also on the Pest side about 5 or six blocks to the east is Gerlóczy Cafe... A very small cafe this is my favorite cafe in Budapest. I usually take a sunday paper ang go about 10 o'clock on a rainy day for breakfast. Though the service is always a bit dissapointing you get a true taste of what life in Budapest was like before the russians came in. I remeber the entire downtown was dotted with cafes like this 50 years ago. There are quite a few restaurants and honestly we have gotten so used to just going to the local SPAR(grocery) and making our own food that we don't go out that often. However, my favorite italian restaurant is Tratoria toscana about 10 block walk down the Danube. On Vaci you might also want to go to Fatal nice hungarian fair. You might have heard of Gundel which for a long long time was considered the best restaurant in Central Europe...well, it's still probably one of the fanciest but unless they have changed ownership in the last 3 years, would avoid. Some still consider it a must stop for their trip, you won't be dissapointed but I don't think people come out of there awe struck anymore.If you make it to the Octogon on Andrassy, this might sound weird but the TGI fridays is very good the other ones are terrible. It is right across the street from the worlds largest Burger King. There is also a pretty good chinese restaurant about 1/2 down the strip on your left side if you are walking or taking the metro to Heroes square and the park. When it comes to 20th century Military Museums the only one I know of is the Terror House on Andrassy. There are some tanks and prison cells in the basement, very depressing though well planned out. Enjoy your trip.
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Do you have any advice on places to go to get a flavour of Budapest's history? Im particully interested 20th centuary or military history