The Inty Huasi Restaurant has been around for a long time, about 12 years, but in the last few, they have gotten exceptional--I believe they have new managers, but I am not sure, just that the place is so much better! The place is always full---not only with locals, but many travellers! It is located on the top of the Indian market, Salinas street, 5 doors up towards up towards Sucre, from the Pie Shop. (Don't forget to go there for a nice piece of pie later on!)..... Inty Huasi does have an extensive menu--Indigenous specialties, seafood, meats, chicken plates, international dishes and some vegetarian options, BUT their daily 5 course lunch is truly a creative and exotic treat at about $4-5! Their 'dailies do run out early' so go there and get a good table, before 3 p.m.. What I mean by "5 course" lunch is---a large and safe exotic fruit juice, soup, appetizer, large main plate and desert. It just simply can't be beat! Sometimes a friend and I share a lunch!
They have live indigenous folklore music on Saturday afternoons so you can just bop on in, enjoy a good meal, some indigenous music and return to the market for more bargains! Their Cold Pilseners may very well be the cheapest in town! The place is usually packed on Saturdays, but, you do not have to go far for a very tasty lunch if you wish to take in all of the Saturday Otavalo handicraftmarket, without losing any time!
I live here in Otavalo, I do not own a restaurant and I usually eat lunch at the Inty Huasi on Saturdays as well as other days during the week, depending on what their "daily special" is. Enjoy!