Nilesh, hope you enjoy Spain.
I doubt the tem. is going to be 35C.
We all have our own style of travel that sutes our interests, budget, age and ability to take it all in.
Sitting outside late at night, with a plate of tapas and a glass of wine, is as much part of Spain and its culture as Alhambra, various churches and Goya.

Hi

do try to see some of the villages, most people go for the big attractions, Alhambra, Cordoba etc and actually miss out on seeing the real spain. If your interested mostly in architecture etc then the big attractions will be good for you but it will most likely be crowded and hot so take lots of water.I live inland and last year in august it was 45 degrees and above, Cordoba hotter as it lies in a bowl. The heat tails off second week in September.
Have you thought of going to a fiesta in there are a lot in September.
Happy Holidays

AndalucianSunshine,

Thanks for your comments, that clarifies a bit. We had read that May, Sept and Oct were best months for Spain Travel and hence were under impression the weather could not be that bad, infact plesent.

Going by your comments, I am getting tempted to drop Cordoba and Toledo and include Nerja. Which one would be best for 2 nights and 1.5 days, Nerja, Malaga or Marbella? Most of the fodorites recommend Nerja, because it is more spanish, less touristy and cheaper. What's would be your choice?

Between Toledo and Segovia, I am thinking of dropping Toledo based on reviewes on Fodors and other forum's where it is mentioned Segovia is cooler and greener compared to Toledo, in addition the castel in segovia is very nice and in Toledo it is mostly artistic stuff, which we are already seeing in Madrid and Seville. Is my choice correct?

My updated(hopefully final) itinerary is as follows:
10-Sep Sat 1 Madrid Arrive at 4 PM
11-Sep Sun 2 Madrid Palacio Real, Museo del Prado, Museo Nacional Centro de Arte Reina Sofía, Retiro Park
12-Sep Mon 3 Madrid Plaza de Toros de Las Ventas, Real Madrid tour, Madrid Zoo and Aquarium, Plaza Mayor
13-Sep Tue 4 Madrid Guided Bus Tour: Ávila and Segovia, Plaza de santa ana
14-Sep Wed 5 Sevilla Early Morning Fast Train(2.5hr) to Seville, arrive 8:30 AM, Alcázar, Giralda, Catedral de Sevilla
15-Sep Thu 6 Sevilla Museo de Bellas Artes de Sevilla, Archeological Museum, Maria Luisa Park, Evening - Flamenco at Casa de la Memória
16-Sep Fri 7 Granada Plaza de Espana, Explore Seville, Afternoon Bus to Granada around 3 PM (3hrs)
17-Sep Sat 8 Granada Alhambra, Albaicin, Sacromonte
18-Sep Sun 9 Nerja Explore Granada, Afternoon Bus to Nerja around 2 PM (2hrs), Explore Nerja, Balcon da europa
19-Sep Mon 10 Nerja Beach, Caves, Lunch(La Marina), El Capastrino Villages-Nerja
20-Sep Tue 11 Madrid Early Morning Bus to Malaga, Train around 9-10 AM to Madrid(2.5hrs), Evening - Puerta del Sol
21-Sep Wed 12 Flight Flight back home from Madrid

Does it look better?
All, your feedback would be very valuable for me.
Thanks
Nilesh

Madrid
Raina Sofia is open Monday. You may wish to do something else on Sunday to avoid visiting two big museums the first day.
We saw Alhambra at night, it is special experience.

I don't know Nerja, but we really liked Malaga ( the Old town) - Andalusian city on the sea.

"do try to see some of the villages, most people go for the big attractions, Alhambra, Cordoba etc and actually miss out on seeing the real spain"

I don't agree that small towns and villages are "real" country - just different than bigger towns and cities.
The same way some insist that ONLY Andalusia is "real"
Spain. Hardly.