Amy Koenig

"Great hostel! Very comfortable (linens are included); the staff are super-friendly; and it's right next to a main bus station. (And across the street from the penis museum, which is worth a visit.)"

"A lovely, low-lit, homey little oasis off the main shopping street. The owner is extremely friendly, the food is good, and they brew a mean cappuccino. Also, free wifi!"

"Four words: rye bread ice cream. (Well, one word in Icelandic: rúgbrauðsís.) Get one of the tasting plates that includes it. The meat soup is also good if you want something hot."