$800 to spend on speakers, $1500 on whole system

As an update to my last post: The 325BEE remains for sale. The seller is asking $300 plus shipping. You might offer the $300 to include shipping.  

Underwoodwally is offering the Micro Mega MyDAC for $249. I think this to be a very good DAC that would not be bettered at that price. He also sell the LSA Model 1 speaker at $599. Both on Audiogon, his number is listed. I am not affiliated however have talked to him and he is helpful.

You might consider purchasing a integrated amplifier and DAC with the intention of keeping them for the long haul and getting a modest used pair of speakers for the short term to provide yourself with music while exploring the speaker market in search of a pair that truly 'floats your boat’.  Purchasing new (to you) speakers is the single best way to upgrade a system and open a new window to one’s music library.  

A couple retail outlets to contact are Audio Advisor and Music Direct. I have dealt with both to satisfaction.

I believe a very satisfying system can be had with your budget. Might take some time and effort. It is about the journey.  For example, I put together a 2nd system for just around your $1200 budget and at ~50% of retail. It consists of the NAD 326BEE integrated, B&W 685 speakers with 4 column steel stands, MHDT Paradisea+ DAC, M2tech USB/SPDIF converter, Audioquest sidewinder interconnects and Type 4 speaker cables. It took time but was worth it. Enjoy your journey!

A used pair of Vandersteen 2C's would fit your budget!

Check out the PC Sprout integrated. 50 wpc, includes DAC, phono preamp, headphone amp, usb, and bluetooth.  About $500 at most sites.  Not a receiver, but you could probably pick up a used tuner fairly cheap, and still have $700-800 for speakers. 

Hello @pawadalla, and welcome to the community.

Since you're new to the game, I thought it might be helpful to lay out a list of brands to look out for. You've entered a new level, with new players. Say goodbye to your old friends Sony and Kenwood, and say hello to your new friends:

Here are the brands I would suggest looking in regards to bookshelves in your price range (used):
Totem
B&W
Sonus Faber (the Concerto can be had for around $750)
Vienna Acoustics
NHT
ELAC (Uni-Fi UB5 is getting STELLAR reviews, comes out soon)
Wharfedale
Paradigm
Proac

B&W, NHT, and Paradigm have products spanning the spectrum from basic consumer to high-end, but in your price range each of their offerings should be high quality. 

Now in the amp/preamp department, same drill. These are quality brands with offerings in your used price range:
NAD
Adcom
Musical Fidelity 
Emotiva
B&K
Outlaw
Rotel

Starting out, you may be better served with an integrated amp. That means your amplifier has multiple inputs for each of your components, and also controls the volume. In the future, you may want to get separate components for these duties.

I traded for some Silverline Minuets a while back. Smallest speaker I've owned. I'm shocked at how satisfying they are. My audio buddy is shopping for some now. Used I'm guessing they run $300-350, as they have been around a few years. Latest version is 699? I think. Reviews online are plentiful. 

Of course, your ears and your money... best to listen to something in your room before buying if you can.

Best,
gary