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Hi Ram, I'm attaching few options for you with this comment, you can click on them to find detail and check pictures. you can also use the same link to book them
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Hello, You can book hostel in both the cities.
For places to visit and things to do in Prague, you can check my blog: http://penning-silly-thoughts.com/traveling-to-prague/. I have added a lot of details and reviews of the places I visited.
As per accommodation in Prague, I stayed in Student House Botic. It wasn't a pleasant experience, so I would suggest you to check the ratings on Hostelworld.com or booking.com for the best accommodation.
Accommodation options in Budapest would GoodMo House or Wombat's City Hostel.
GoodMo House was a little cheap than Wombat's, but it was super cool with spacious room and common area and clean kitchen. I stayed in Wombat's in Munich and Vienna and I can swear it was by far the best hostel I have stayed in. Super cool party culture place.
For Budapest:
Definitely eat at Sock's Coffee(small breakfast cafe), Govinda Restaurant (for a super simple vegetarian Indian food).
Walk around the city and as you do that make sure to stop by and appreciate the old architecture that the city has.
You can visit places like:
Jewish Synagogue, St. Stephen's Basilica and if you are lucky, you get to watch live movie screening just outside the church, walk across the famous Chain Bridge, and go to Fisherman's Bastion (you get amazing views of the Hungarian Parliament Building and rest of the city from here) followed by Buda Castle, watch sunset from Elisabeth Bridge, hike up the Gelle?rt Hill, enjoy warm bath at one of the thermal baths, go to Margaret island and must must go to Great Market Hall for shopping souvenirs and much more.
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