I've been really happy with my Lake MX101s. Bought them new for $20 on e-bay... If you watch e-bay there are good deals on "casual" bike shoes all the time. I once bought a pair of Lake LX60 shoes for $1 plus shipping.
Edit: The cleat is not deeply recessed - there is some scraping. But the shoe has a Vibram sole (commonly found on high-end hiking boots) which is holding up very well to urban use.
Last edited by matthew_deaner; 11-05-07 at 04:24 PM.