I first discovered Krakow in the spring of 2001 on a research trip to Poland for a book I was writing. My husband Byron and I rented a car in Warsaw and drove south until we reached Krakow, the largest city in the south. We were happily relieved at how safe and easy the drive was, how clearly the roads were marked, how pastoral and peaceful the countryside, and how eager the people were to help us.

Many misconceptions I had about Poland dispersed that week, but Krakow was the biggest surprise, the highlight of our journey, and we vowed to return as soon as possible. We were enchanted by the Old City with its medieval and Renaissance architecture, horse drawn carriages, myths of knights and dragons, and the daily spectacle of street performers, jugglers, puppeteers and Gypsy fiddlers.

If you have never been to Poland's royal and cultural capital, you are missing layers of history and culture and magic, in 800-year old cavernous cellars hidden underneath city squares, inside mazes of inner courtyards, and tucked away in narrow cobbled streets. Krakow's Old City miraculously survived a millennia's worth of invasions, wars and occupations intact. Now, Krakow has been reborn as Europe's newest darling, a magnet for young people and tourists from all over the world, with countless restaurants, outdoor cafes, shops, bars and clubs abuzz with modern life, in the shadow of sacred stones and ancient cathedrals.

This past summer, we finally returned to Krakow, and stayed for a month. For travels outside of Krakow (you don't need a car if you are staying in the Old City), we rented a car (www.budget.pl) for about $400 per week. But we found driving more complicated now. For one thing, there are many more cars on the roads. On top of that, Poland is upgrading all major roads and freeways in advance of the European Soccer Cup to be held here in 2012, so detours and road closures abound.

Prices have skyrocketed! Poland is still less expensive than many other European countries, like the Czech Republic or Germany, but last time I bought a liter of delicious Polish beer for 12 cents. Today, it's more like $3, which still is not bad. And Polish beer is so good!

In 2001, we stayed at the Hotel Saski (www.hotelsaski.com.pl) on S_awkowska Street, a few steps off the Old Market Square, and loved it. We peeked in again, for old time's sake. With its antique elevator and old-fashioned doorman, it seems a little threadbare, but is still a good choice, especially for its location and restaurant, Metropolitan, which boasts the best breakfast in town.

For this trip we chose the Hotel Pod Wawelem (www.hotelpodwawelem.pl) on Na Groblach 22, fronting the Vistula River, beside the high walls of the famed Wawel Castle, near the huge fire-breathing statue of King Krak's dragon. Modern, spare and air-conditioned, this new hotel is moderately priced at $135 per night, and offers unbeatable sunset views of the city and river from the rooftop bar and restaurant. As with most hotels in Poland, breakfast is included, and here it is a bountiful buffet in the Lemon Day restaurant on the ground floor.

I have a rule about staying at hotels facing the train station in any city, but I'd suspend it to stay at the stately 125-year old Hotel Europejski, (www.he.pl) opposite the station. Rooms begin around $150 per night, and what Old World elegance awaits inside the geranium bedecked windows! The hotel has a spa and is perfect for train travelers with only one or two nights in Krakow.

As frugal travelers, Byron and I always seek out the biggest bang for our increasingly devalued buck. For lodging, we found the best deal online. When it wasn't otherwise rented, our home base for the month was a tiny studio on a quiet tree-lined residential area, a 10-minute walk to the Planty, the green beltway park that surrounds the Old City and Wawel Castle, for $50 per night.

The Gibek family (gibek@wp.pl) owns the apartment building and the oldest son, Andrjez, manages the rental of the ground floor unit, which he advertises only on Craigslist.com. The Gibeks were pure gold — mother Maria would send down slices of homemade Polish pastries and even did our laundry, especially nice since laundromats seemed to be nonexistent. Andrzej guided us on an underground crawl to his favorite clubs, and his younger brother, 18-year-old Peter, cheerfully helped us with our wi-fi connections and computer questions.

We sampled dozens of restaurants throughout the Old City, in the vicinity of Wawel Castle and around the revitalized old Jewish quarter of Kazimierz and never once had a bad meal. We stayed on the lookout for new discoveries, the tastiest food in the most intriguing or authentic atmosphere, and always with an eye to cost.

We loved the hearty Zapiekanke, open-faced baked baguette sandwiches with vegetarian, meat or seafood toppings. These can be found at food stands around the city and cost between $2 and $4. For the best Zapiekanke, which loosely translates as "fast food," go to the old circular building at the center of Plac Nowy, in the old Jewish section of Kazimierz. We returned again and again, standing rain or shine in the long line (figure 15-20 minutes.) My favorite was smoked salmon, chives and garlic sauce, but the vegetarian with mushrooms and cheese was mighty fine, too. With your 18-inch long loaf in hand — it's served with a single, thin napkin — you can sit in any of the surrounding cozy cafes or outdoor pubs, order a delicious Polish beer and enjoy your "snack."

Pierogi is a national specialty, with restaurants devoted to variations on this one dish. At the intensely romantic, vaulted underground Pod Aniolami (www.podaniolami.pl) or "Under the Angels," you can savor some of the most delicate aromatic examples of these delicious dumplings as appetizers. For a third of the price, try the kitschy and candlelit Kurna Chata restaurant on Krakowska Street, near the Ethnographical Museum.

We had the most fun at Restaurant Pod Wawelem (www.podwawelem.eu), near Wawel Castle on the Planty at Sw. Gertrudy Street. Pod Wawelem is a common name, given to several restaurants, pubs and hotels near Wawel Castle. Pod means "under" and Wawel is the promontory on which the royal castle was built. This Pod Wawelem is a lively Austrian Empire-themed restaurant with a (sometimes raucous) beer-hall atmosphere, live gypsy music and enormous and delicious portions.

After consuming a scrumptious late-night meal of salmon and trout at a restaurant on the smaller square underneath St. Mary's Church, we did have one rude awakening. When the bill arrived, it was three times what we expected. Byron questioned our server and we learned our mistake. In most restaurants in Poland, many entrŽe menu items, especially fish and seafood, are listed with a price per 100 grams. Actual servings are often two to three times that, and so is the price. Always ask your server how many grams are in your particular dish-then you can calculate the actual cost of the dish before ordering!

IF YOU GO

More general info on Krakow can be found at http://www.everydaykrakow.com and http://www.krakow.pl

Kathi Diamant is the author of "Kafka's Last Love: The Mystery of Dora Diamant" (Basic Books; $18.95) and adjunct professor at San Diego State University. To find out more about Kathi Diamant and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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