The Cogwheel rail (Fogaskerekű) is one of the most interesting means of public transportation in Budapest. It goes up from the Varosmajor (near Moszkva ter M2 underground station, 2 stops from here with the tram No. 56 or 18) to the Szechenyi Hill, which is a great starting point for some short excursions in the Buda Hills. You can also get from here to the Janos Hill look-out tower, which offers a great view of the city and it’s sorroundings (in clear weather obviously :). In winter (and if it\’s snowing of course) you can access with the Cogwheel railway Budapest’s only skiing area: the Normafa.
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