Of course the thrice-weekly market in Pisca gets all the attention, but one personal favorite shop is La Casa del Té y Arte, next to Ulrike's Café right on the Plaza de Armas (tel. 084/984-730-862), which features the uniquely designed felt slippers and funky hats made by hand by an Austrian woman and her Peruvian husband. Both items make great gifts.
Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.