Basic, cheap, and friendly place, located a few blocks from the main square and tourist boulevard of Puno. The whole hostel is a bit squashed in, between other establishments; but the rooms aren't too small, and the staff are quite nice. We stayed here before and after our trip to Amantaní — decent enough crash pad.
Rooms: basic, but nice (not really dorms — more private).
People: great: we met some people to go to Amantaní with at this place.
Staff: quite friendly (no English).
Location: a few blocks from the action in Puno.
Food / Internet: both available downstairs at an extra cost (reasonable prices).
Hot water: not entirely reliable (cut out for me once), but pretty good.