Blazing Rootwalla

If you discard a card with madness while a spell or ability is resolving, it moves immediately to exile. Continue resolving that spell or ability, noting that the card you discarded is not in your graveyard at this time. Its madness triggered ability will be placed onto the stack once that spell or ability has completely resolved.

Madness works independently of why you're discarding the card. You could discard it to pay a cost, because a spell or ability tells you to, or because you have too many cards in your hand during your cleanup step. You can't discard a card with madness just because you want to, though.

A spell cast for its madness cost is put onto the stack like any other spell. It can be countered, copied, and so on. As it resolves, it's put onto the battlefield if it's a permanent card or into its owner's graveyard if it's an instant or sorcery card.