Paraguayan food is one of the most diverse in south American region. Paraguayans commonly enjoy typical food several times a week all year round. You'll find much of the standard South American cuisine here with some Brazilian influence as well.
Also highly popular are empanadas meat/egg stuffed in a pastry and baked and milanesa breaded and fried chicken/beef/fish - these are considered fast food, and are also found in other countries in the region. If you order a hamburger at a restaurant, expect it to come topped with a fried egg.
Asado BBQ is great, and prices are quite reasonable - 20000 Guaranis $4.00 US will get you an all-you-can-eat buffet at many nice places. 5000 Guarani is enough to pay for a hamburger.
Paraguayan food isn't particularly spicy, so those who can't tolerate spices won't have problems here.
There is a lot of traditional food. Chipa-a bread baked in an outdoor oven or "tatacua", usually made out of mandioca manioc flour. Mandioca is often substituted for potatoes. Sopa Paraguaya is a form of corn bread are two of the most well known. Sopa means soup, so it is very interesting to be actually eating a solid soup, probably the only one in the world. Mandioca, or Mandi´o in Guarani It is similar to a potato, and is normally eaten boiled but can be fried. It is eaten almost everyday by Paraguayans, and many have it growing on their land. Tortillas in Paraguay are different than in other places in Latin America. It is more like a fried dough made with Paraguayan cheese. Try Sopa So'o if you get the chance--it is Paraguayan cornbread with bits of pieces of meat often marinated with garlic and lime. Mbeju is a mandioca starch and paraguayan cheese based flatbread.
Lido Bar- Paraguayan institution. Sit at the bar and talk to lady waitresses who have been working there for the past decades.
Bolsi- similar to the Lido, but with a more “international” vibe.
Fiambrería La Alemana- Paraguays biggest german charcuterie. Past the front sales spot is a bar where local taxi drivers and alike come to eat a snack. Incredibly hygienic. Check opening hours.
Ña Eustaquia- traditional Paraguayan food.
La Vienesa- with many stores located in Asuncion. Traditional french style coffee-bakery and patisserie with a small but cozy neighbourhood restaurant.
Lomitos El Gordo - Family restaurant located in San Lorenzo run by paraguayan personality Gregorio Rojas
Tierra Colorada- arguably the best chef in Paraguay, Rodolfo Angenscheidt, has open his own restaurant a little over a year ago. The best local ingredients cooked under culinary perfection.
Un toro y siete vacas- Traditional paraguayan asado.