It was given to us as a gift, but I would say our Breville Bambino espresso machine. We were already making morning cappuccinos or lattes ourselves with an Italian "moka" stovetop, but this is considerably better, especially when coupled with a decision to buy better quality beans from local roasters (we're lucky to be in a city with good quality roasters and coffee shops). We're getting as good or better as we could get in a good local coffee shop (and I don't mean Starbucks) for a fraction of the price, plus the convenience.

Also, to defray the higher cost, and for health reasons, my wife and I cut our afternoon coffee. Less is more.

(Update: After writing this I checked online and it turns out the Bambino costs $350, so not sub-$200, oops.)