Taos has, as local Taoseños would argue, the best New Mexican food in the state. Popular places inclue Orlando's Grill, Guadalara Grill, El Taoseno, and La Cueva. All are located within a ten minute drive of downtown.
Be prepared, Orlando's Café does not take reservations and is very busy, but it is certainly worth it to go! Grab a margarita and sit outside in their waiting area! For breakfast, many Taoseños love Taos Diner (American/New Mexican), or Gutiz(French/American fusion, with many gluten free options).
Orlando's New Mexican Café
Taos Diner
Lambert's Fine Dining of Taos