Is is possible to travel by car from Lima to Cusco? I think it is and will describe how to make this drive from Lima to Cusco (also spelled Cuzco) in this post.
Each of the steps listed below have links to more detailed descriptions of this drive, which can be done in three to five nights - depending on how many things you want to see along the way.
If you have at least three weeks in Peru, there are more than two people traveling with you, and it is not the rainy season, I highly recommend traveling by car from Lima to Cusco. Here’s why: the trip itself provides you with fantastic vistas and you will have plenty of options to get off the beaten track. The other reason is the awesome scenery along the way that you will be able to experience fully by driving during the daytime.
Step 1: Get the book - Aventura 757 km. So far, it's only available in Spanish, but I highly recommend it if you can read even a little bit of Spanish.
Step 2: Get a rental car. There are several agencies, and I won't recommend any in particular. I will say that it might be a good idea to get the full coverage insurance - so long as it is not too expensive. I will also recommend paying with your credit card so that the credit card agency can deal with any mishaps related to being over-charged, etc.
Step 3: Get out of Lima and drive at least to Pisco. Depending on when you leave Lima, there can be a lot of traffic to get out of the city. If you leave at a high-traffic time, it can take up to three hours just to get to Pisco.
Step 3: Check out the Reserva Natural de Paracas. You could skip this step and save yourself a day of travel, but you'd miss out on sea lions, flamingos, jellyfish, and delicious tamales.
Step 4: Check out the Nazca Lines. The Nazca Lines are on the way, and they are right on the highway, so there is no reason not to stop and see them. You just want to make sure that you get to Kilometer 408 and Kilometer 424 before dark so that you can actually see the lines. After seeing the lines, there are plenty of places to stay in Nazca. (If you have limited time, you can leave Lima early and still get to Nazca in time to see the lines.) Either way, you will have to spend the night in Nazca.
Step 5: Drive to Puquio. It is only 90 kilometers from Nasca to Puquio, but I suggest going as slowly as possible because it is also a 4000 meter (12000 feet) ascent. If you go too quickly, you are sure to get altitude sickness. You can take your time, check out the vicuña reserves along the way, and drink plenty of coca tea to ward off altitude sickness. There are places to stay in Puquio as well.
Step 6: Drive to Chalhuanca. You could go straight to Chalhuanca from Puquio if you are in a rush. But, my suggestion would be to spend the night in Puquio, and then set out for Chalhuanca in the morning. This would allow you plenty of time to check out the amazing hot springs of Pincahuacho on the way. You can spend the night in the community-operated hot springs, which I recommend doing.
Step 7: Drive to Carahuasi. This is another amazing drive. And, there is a great turnoff point for the Pachachanca bridge, where you can see a colonial bridge and even go horseback riding. You can spend the night in either Carahuasi or Abancay. From there, you are very close to Cusco!
Step 8: Last leg of the trip. From Carahuasi (or Abancay) to Cusco. Be sure to make time to stop at the ruins at Tarawasi on the way. You can easily make it to Cusco by the early afternoon, even with this stop.
In sum, you can make it from Lima to Cusco by spending five nights on the road - and you would get to see all these amazing sights. If you are in a rush, but still want to play it safe by only traveling by day, you can leave Lima early, spend the first night in Nazca, the second night in Chalhuanca, the third night in Abancay, and be in Cusco on the fourth day. That would be the fastest I would recommend.
You can drive back the same way, or take a detour through Puno and Arequipa, and see other amazing sights.