El Cafetal
The best restaurant in town is the French owned El Cafetal (http://www.elcafetal.co.cc). It's an open air restauramt under a jatata roof, with an excellent view down the valley obviously no view at night!. Expect lamb curry, llama goulash, trout lasagna and crepes amongst others. 40BS+ They are also a hotel.
Villa Bonita
Best price/quality at the vegetarian Villa Bonita, also famous for its ice-cream.
Pizzeria Erika
Has fairly cheap pizzas and pastas, but you can also go for a set meal.
comedor municipal
Try the comedor municipal for cheap food from Bs6.