I'd go with Cash. Probably USD. I think with travellers cheques you have the hassle of going to a proper bank to get it exchanged. Make sure you inspect your rupees when you get them and look carefully for discoloration, tears, rips. Don't take it and ask for better looking ones. Otherwise you might get stuck with that money.
Depends where you go will determine what you spend on food. I was at an ashram in Puttaparti and I spent 7 rupees on a meal which equals maybe 25 cents (though that was seriously off the backpacking circuit). If you go down south, off the main tourist circuit up north, you can probably pay about 30-60 rupees for a decent meal. in Delhi... maybe spend up to 100 rupees if you're in Paharganj (the backpacker section of town).
Just remember that food you get in the south can't always be found in the north. No one really sold idli sambar in Delhi 😞
As for random tips... get a healthy supply of ciprofloxin antibiotic before you go. Also get quick-dissolve immodium (not the regular one), as well as rehydrating salts. Don't get cocky with the food (as I did even though I thought I was seriously immune after having gotten sick numerous occasions and had to use ciprofloxin in south america). The water situation I'm sure you've heard numerous occasions but stay away from local made fresh beverages, lettuc, tomatoes in your food, local ice cream, local sauces. I know that these are the best parts of local cuisine and I fully advocate trying them but they also lead to you getting seriously sick. I thought I was immune after travelling for 5 weeks in SE asia & india. Then I got sick, couldn't leave my hotel room and when I finally was ok enough to go the Taj Mahal, it was the one day of the week it was closed.
Random suggestions: Invest in a salwar kameez. make sure it has sleeves. I got the feeling many women viewed me as slutty because mine was sleeveless.
go to a hardware store there, and get a chain and lock which you can use to lock up your luggage to the rails.
If you wear contacts, consider in investing in night & day contacts so you dont have to take them out. I didn't really trust the sanitation there.
Buy lots of wetwipes that you can use while travelling.
Buy little mini travel com locks to lock up your purse, backpack on day trips.
Save most of your shopping until you're about to leave though Goa does have cool things that I couldn't find in Delhi. It was a serious pain to lug my souvenirs around travelling.
Try the chai at the train stations. They're tasty and cheap. In Agra (Taj Mahal) they come served in terracotta cups that you throw onto the train tracks afterwards to prevent ppl from reusing them.
I found that men & women don't shake hands when meeting each other. So when strange men come up to you, thrust their hands in front of your chest, don't shake back. Just put your hands together with your fingers pointing upwards and say Namaste. I got the understanding that if I had responded, I would be considered a pretty loose western women with lower morals.
If you're flying into Delhi and arriving late at night, you might want to make a reservation. Otherwise, you're at the mercy of whatever is available and ithink I ended up paying $70 USD for a crappy crappy hotel room that was in the middle of nowhere.
If you have any further questions, let me now.
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