I'm not that familiar with the stereo options in the Mk2s, but I'd imagine its a simple single-DIN setup.
Understand that you want to keep the stock look but if you want the cheap and cheerful option I would guess that the easiest would be to buy a cheap Sony or Kenwood head unit that has USB input and keep hold of the original stereo if you wanted to put it back in to get the car back to stock look...
Something like this has all the bits you need to fit it, I'm sure they are available elsewhere...
VW Golf MK2 CD player car stereo Kenwood KDC-4551ub AUX MP3 USB radio kit | eBay
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