Casa Hood
Perhaps the most recommended restaurant in Banos, Casa Hood serves up an eclectic array of dishes that are all outstanding, including many vegetarian options. The atmosphere here is very relaxed and the many bookshelves full of books and games make it feel like a living room. Any of the books can be traded for your own and the games are open for anyone to play.
At the market you can find decent meals from $1 to 1,5$.
Napolitano Pizzeria Restaurante
A laid back Italian themed restaurant with outstanding lasagna. Also has a pool table in the back room.
Pancho's Snack Bar
The confusing mix of cultures inside these doors make the place a hit. Enjoy your superhamburguesa between the shrine to Che Guevara and the pictures of John Wayne.
sugar cane taffy (melcocha)
Melcocha is Ecuador's hallmark candy and the majority of it is made in Baños. The abundance of sugar cane in the area makes this version of taffy a local specialty. It is a naturally sweet taffy made from boiled raw cane syrup. In store fronts that sell it you are likely to see it being made by pulling it and beating it against sturdy door frames.
sugar cane juice (jugo de caã±a)
Sugar cane is also popular in a less worked form as chewable cane pulp sticks or squeezed juice.