Hotel Posada Santa Fé
Go to the Hotel Posada Santa Fé for alfresco dining at the Jardín. Try the pozole estilo Guanajuato (hominy soup to which you can add onions, radishes, lettuce, lime, and chili peppers). The service and food are just average, actually, but the people-watching opportunities are excellent, and the restaurant has a "Distintivo H" award for cleanliness.