There are a few cosey hostels in central KL where you can be everything for little money. I have stayed at a few over the years, but keep coming back to Backpackers Travellers Inn at 60 Jalan Sultan right in the heart of Chinatown. It is a cool and friendly place and is always booked out as it has a good name amongst travellers. If you wish to book in advance or check for vacancies the number is 03-2382473. There are dorms for about RM10 and rooms for about RM40 but both prices can be more if you want air-con.