The Praque Orgy by Philip Roth,
A Perfect Spy, John La Carre,
Prague Tales, Jan Neruda
and most of Kafka

I know its an old thread started before I was a Fodors member but nobody has mentioned the classic czech Novel of all time.
The Good Soldier Svejk by Jarosalv Hasek, not actuall set in Prague the main character makes mumerous refrences to other characters and places in the city,in Prague nowadays there ar several Svejk themed pubs