For a fine dining experience, follow the main road down to the lake and look for the hotel Villa Santa Catarina. It will be on your left-hand side after the school, about half way down.
If you're looking for an affordable place to eat there are three small restaurants on the shore-front. Just follow continue down the the main road to the lake, past the Hotel Villa Santa Catarina. When you get to the lake, follow the shoreline to your left. The three restaurants are all next to each other. You can't miss them.