If you get a nice day, rent a bike and do a tour of the city. I think there are actually some guided ones if that's your thing.
If you go to Auschwitz, make sure you also take in Birkenau. A lot of people don't do that second half of the tour, but I found it much more impressive than the Auschwitz camp.
Don't worry about going to nice places on the main square. They've got some fantastic restaurants there, and even the expensive ones are all about Earl's pricing.
You'll have a great time. Krakow is just a lovely city.
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