Molino is Cusco's largest black market (tolerated by the authorities - you won't see many tourists, but you shouldn't have a problem -- just hang on to your wallet, as you would anywhere).
Don't try to walk here, as it's pretty far from the Plaza and main tourist areas of the city. Just get in a cab and ask for "Molino". Here, you can find imported and imitation backpacks, electronics, toys, games, CDs, DVDs, clothing, shoes, household items, jewelry...all at incredibly low prices. I went to get supplies before I hiked the Inca Trail to Macchu Picchu and found a flashlight for $1, a backpack for $8, and a fleece jacket for $4. CDs and DVDs are $2-$3 usually. Wow!
A word of caution --...Read More