The owners of this superb backpacking place have fashioned an excellent hostel on the rooftop of Hotel Helios. Dorm beds are comfy (and interestingly include double and triple-sized beds), as are the bamboo gazebo-style rooms. It has a great shared showerblock and guest kitchen, too.
In the evenings the bar-cafe here, with its commanding city views, is the place in Malang to grab a cold beer and socalise with other travellers late into the night. It also offers a bunch of tours in the region (including Bromo), cooking classes and free city walks.