Aldo's Guest House is where I stayed for my whole time in Huaraz. The owner (Aldo) is very knowledgeable about all the hikes around Huaraz and he's super friendly. He even gave us free Pisco Sours on our first night!
The hostel includes free brekkie which is usually bread, avocado, eggs, and fruit. You make it yourself but you can take as much as you want (and use it for lunch on a hike).
The hostel kitchen and chill out area is located at the top of the stairs and you will be winded every time. Thank the altitude for that. Its not necessarily the nicest hostel in terms of bedding and showers etc, but the vibe is really good! Everyone is really social and always linking up for hikes and sharing advice etc.
It's also in a great location, near a grocery store, bank, restaurants, and the main shops.