The Highlands Restaurants

1. Casa San Juan

Though smack-dab in the middle of the market hubbub, this peaceful second-floor restaurant, with its wrought-iron chairs and wood tables, offers a reasonably quiet respite from the activity below. These folks dish up their signature pollo estilo San Juan (chicken breast in tomato sauce), with guacamole salad and rice on the side. The menu makes a big deal of specifying that the chile relleno is "not spicy." It's actually a beef and vegetable-filled bell pepper, a signature highland dish. Whatever your main dish, be sure to accompany it with the warm homemade tortillas. Sunday market-day lunch gives way to a sumptuous buffet.

2. Comedor Flipper

A cage of lively birds lends a cheerful atmosphere to this small eatery, which serves good Guatemalan fare. The avena (a warm oat beverage) is delicious, especially on a cold morning. There is no sign of the restaurant's trusty namesake, though a ceramic sailfish atop the refrigerator comes close.

3. El Kopetín

Good food, attentive service, and reasonable prices make this place popular with the locals, so it can be tough to get a table later in the evening. It couldn't be described as fancy, but this restaurant's long polished bar and wood paneling raise it above the usual neighborhood dive. The menu has a number of delicious appetizers, including traditional queso fundido and a selection of meat and seafood dishes that are smothered in rich sauces. Saturday, the place whips up its caldo de mariscos (seafood stew).

4. El Patio

Although it's known by the outdoor patio with umbrella-covered tables that gives the place its name, most of the restaurant's tables are inside a large dining room decorated with lots of palms and ferns, and a few indigenous drawings on the wall. Nevertheless, the lunch and dinner menus offer great variety, including such choices as pepper steak, roast pork, and chicken à la king. It's also a popular spot for breakfast. You'll find a couple of Internet computers to log on to after you eat.

5. El Tocoyal

Our favorite in-town lakefront restaurant, with great views from its picture window, takes its name from the tightly wrapped cloth worn as a headdress by Tzutuhil women in the area. This is about as elegant as Panajachel gets: waiters in white shirts and bow ties scurry around and serve pepián or chile relleno on the local side of the menu, or a good steak if you're looking for something international. This is still Pana, though, so you don't need to dress up.

6. Jardín Café

This colorful little corner restaurant is friendly and popular among the locals. Come early for the excellent pancakes served at breakfast, or stop by for beef and chicken dishes—pepián (a fricassee in pumpkin and sesame sauce) or chile relleno are favorites here—at lunch or dinner. The menu includes a few Mexican favorites as well.

7. La Fonda del Tzijolaj

This restaurant's second-story balcony overlooking Plaza Mayor is a great place to watch the vendors set up on the eve of the market. The pollo chimichurri (chicken in an herb sauce) is one of the best choices from the mostly traditional menu. There are also a few surprises, such as pizza and pasta.

8. La Villa de los Cofrades

With two locations within a block of each other, it's hard to miss this longtime favorite. The smaller of the two has patio seating right on the Parque Central, where you can watch the vendors setting up their stalls while you feast on Belgian waffles or sip one of the finest cappuccinos in the country. If you're in a hurry to get to the market, remember that the service here can be miserably slow. The other location, called simply Los Cofrades, a block away on 5 Calle, has a less hectic atmosphere on a second floor that lets you survey the fringes of the market.

9. La Villa de los Cofrades

10. Tu Café

Take a break from shopping at this tiny eatery—you'll find just 10 tables here—with plain decor on the corner of the Parque Central. This place offers a huge selection of sandwiches—choose from chicken, various cheeses, ham, roast beef, or club—or opt for the daily lunch special, with a main course, usually chicken-based—perhaps a pepián, with a side of rice and vegetables—for Q25. You can fortify yourself early in the day, too, with a breakfast of omelets or pancakes.