It turned out that we didn't spend new year eve on either of the city.
We were in Ollantaytambo. There was no big celebration and we were already in bed because very early train to Machu Picchu.
By midnight, lots of fireworks on the street and we were waken up. Said to each other "Happy New Year" and went to bed again. Very low-key celebration but new year's day in MP was just special.