We review recent developments in the physics of ultracold atomic and molecular gases in optical lattices. Such systems are nearly perfect realisations of various kinds of Hubbard models, and as such may very well serve to mimic condensed matter phenomena. We show how these systems may be employed as quantum simulators to answer some challenging open questions of condensed matter, and even high energy physics. After a short presentation of the models and the methods of treatment of such systems, we discuss in detail, which challenges of condensed matter physics can be addressed with (i) disordered ultracold lattice gases, (ii) frustrated ultracold gases, (iii) spinor lattice gases, (iv) lattice gases in "artificial" magnetic fields, and, last but not least, (v) quantum information processing in lattice gases. For completeness, also some recent progress related to the above topics with trapped cold gases will be discussed.

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We present a review of properties of ultracold atomic Fermi-Bose mixtures in inhomogeneous and random optical lattices. In the strong interacting limit and at very low temperatures, fermions form, together with bosons or bosonic holes, composite fermions. Composite fermions behave as a spinless interacting Fermi gas, and in the presence of local disorder they interact via random couplings and feel effective random local potential. This opens a wide variety of possibilities of realizing various kinds of ultracold quantum disordered systems. In this paper we review these possibilities, discuss the accessible quantum disordered phases, and methods for their detection. The discussed quantum phases include Fermi glasses, quantum spin glasses, "dirty" superfluids, disordered metallic phases, and phases involving quantum percolation.