Discovery Cafe is actually a bar cum cafe serving western food. It has since expanded to host guest stay overnight. It has rooms and dormitory for male / female. RM 17.00 per pax per night for air-con dorm. It also comes with breakfast toast and cup of coffee.
Its living room area. 
Bathroom at the back. Beware of mosquitoes...that's the reason they installed the mosquito net.
Another list of popular choices near Jonker street is Cheng Hoe guest house. It has nice rooms choice and dormitory that sleeps male and female. RM 15.00 per person per night. Rooms can be as low as RM 40.00 per room to RM 80.00 above. This dorm is fan only and quite clean, no mosquito.
You may want to upgrade your accomodation to upscale trendier rooms. You need to look for hotels and if convenience is what you looking for, there's always hotels around Jonker walk that goes as far as RM 70.00 per room per night with breakfast. If you planned to stay just in Malacca, there's also plenty of 3-5 stars hotel outside of Dutch Square area like near the Jetty - Holiday Inn and Mahkota Parade that can cost up to RM 250.00 - 350.00 per room per night. Then the downtown hotel that is between RM 90.00 - 150.00 per room per night like Johan hotel at Melaka Raya, etc. All you have to do is walk abit from Dutch square or take a cab.
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