Loki is a massive hostel, accommodating well over 100 people, at the top of a big hill overlooking central Cusco. Everyone stays at Loki, which is good and bad, and which makes it something of an institution. It's great value, it's real friendly, and it requires at least a week just to explore the place.
Rooms: warm and clean, not too crowded, and copious.
People: like I said, they have everyone here. Mostly a great crowd.
Staff: helpful, English-speaking, and most double as full-time guests.
Location: 5 minute walk from central square, up a big hill.
Food: good basic breakfast, but the dinner / lunch / snack food is a ripoff — go out or cook instead.
Internet: 3 free PCs.
Hot water: when I was first there, they had no water! (Due to problems Cusco-wide). Generally, though, hot water is plentiful and reliable.