Avoid the restaurants in Times Square. I had the most awful cup of of coffee I have ever had there at one place, and the worst calamari ever at another big Times Square restaurant. Once I got away from the tourist trap area, I did have some of the best meals I've ever had in my life.
If you're looking for just a simple, inexpensive breakfast of good coffee and a bun, Amy's Bread is amazing! I had a slice of brioche french toast, and it was heavenly! Be warned, there are few tables, so you will likely have to go outside somewhere to eat. It's worth it.
If you like great lox bagels, check out Barney Greengrass and/or Russ and Daughters.
If you like Italian food, go check out Eataly. It's an incredible market with several areas to sit down and have a meal. It is a bit pricey, but my folks and I agree we had a couple amazing lunches there. I thoroughly enjoyed having a great charcuterie platter with a perfect pint of Dog Fish Head ale.
Also, for great pastrami sandwich, Katz's Deli and the Carnegie Deli are amazing! Be warned that the food at the Carnegie Deli is huge, and you can certainly share.
The seven day MTA passes as others have mentioned are totally the way to get around.
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