Our hotel staff recommended El Albergue to us. It was a bit tricky to get to: it faced out onto the tracks at the train station and we had to wait while a train from Aguas Calientes emptied out before we were allowed through onto the platform.
We were visiting during the rainy season so the restaurant was pretty quiet. The lighting and dark wood create a very romantic mood, I think. The restaurant prides itself on its use of local and organic produce (IIRC, they have their own little farm). My boyfriend had the alpaca burger (it was ok, but not the best alpaca on the trip); I had one of the specials - a creamy soup flavored with huacatay - and some chicken skewers. The chicken was delicious: tender and cooked to perfection; the soup was good, too. We also had happy hour Pisco Sours (buy one, get one free) so that was nice.
The only thing about this restaurant that was a negative was that it's a bit pricey for the town. Otherwise, it's very nice.
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