I'll start by saying that this country has one of the most captivating landscapes I've ever seen. There is so much to see -- so many natural wonders, so much fresh, local food, hip coffee shops and art galleries but also sprawling, rural farms. If you're planning a trip to Iceland, I'll spare you some time and let you get on with your planning -- here are some of my recommendations.
Truly did not have a bad meal in this country - but I will say, expect to pay anywhere from $25-50 for breakfast and lunch and likely, more for dinner. We had a delicious breakfast at Stofan but my food was $27. Here are some places we ate/recommend:
Stofan: I read a review of this place on Conde Nast Traveler's site and was drawn to it -- and it was the perfect refuge for us when we arrived in Reykjavik at 7am and couldn't check in to our hotel until 2pm. Cozy, warm, and tastefully eclectic. Breakfast was around $25-$30. $-$$