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Ten days in Europe, what to do on the cheap?

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I have $2500 to spend on a vacation and have decided I will go to Europe. Hopefully leaving on March 9th and arriving on the 10th and returning on the 18th. I figure I have 8 days and 9 nights after travel time. I may be going with friends but am considering going alone, I am a 31 year old single woman. I would love Ireland or Italy but am saving those vacations for a later date with my daughter and best friend. I'm thinking London, Amsterdam, Paris, Prague, Barcelona.... While I realize that I could run around to a few places for a day or two each, I think I would like to limit it to two or three places so I have time to explore. Because of my budget, I plan on staying in hostels. I figure a plane ticket will run me about $850 so i will have $1600 left which is about $200 per day. I think I can stay in hostels for about $50 per night. Ideas, advice, suggestions? Thanks and blessings!

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