My wife and I went to Cafe Madrid on Broadway Friday, and I am pleased to report that we had a simply delightful meal. They have a $20.00 prix fixe (soup or salad, entree, dessert), and everything we had was very good and up. (In particular, I had probably the best gazpacho of the summer, even though I do know that it's not summer.)
I can only liken Cafe Madrid to a restaurant you'd find in NYC. Chef comes from native country; cooks around town (in this case, Chef Pepe came from Madrid and cooked at the Milton Inn from 1969 to 1972) and starts his own restaurant. The food is authentic; he obviously cares about his cooking; and everything is delicious.
Cafe Madrid has been at the current place for four years, so evidently it's holding its own, but I'd highly recommend it for chowhounds looking for something different than the ordinary Baltimore fare. Call ahead for special dishes, like his "blank ink paella" (made with squid ink), and he's evidently developed or developing a tapas menu too.