My all time favorite coffee shop in Madison!
Steep & Brew is a nice place to stop while you are on State hitting up the farmer's market. I used to study here with friends too. When it is nice outside, you can sit in their outdoor patio area. They have excellent coffee and a great selection of tea. Compared to other coffee shops, the number of tea choices is much larger.
The prices are great and you can get both a small coffee (minus lattes) and tea for around $5. They also have punch cards. After 10 drinks, you get one on the house. The staff is friendly. Depending on the time of day, there can be a wait, but it's worth it.
They accept debit cards, but charge a fee for using credit cards...FYI if that's a problem for you.