Cheap eats abound on Calle La Calzada, Granada’s restaurant row. The best traditional Nicaraguan fare —pupusas, $3; or Indio Viejo (meat stew with local cheese and plantain), $2.60—is at Comidas Tipicas y Mas (from Parque Colón, first on right).
A high-end French meal at Jardin d'Orion (Calle Caimito, south end of Parque Colón; 505-8429-6494) won't set you back more than $75 for two (a three-course meal with wine pairing). The colonial building is newly renovated, but the lush garden is a more romantic setting.
Drink enough sangria to forget the past at Doña Conchi (Calle Caimito de la Alcadia, #413; 505-2552-7376). In between tapas courses, examine the bullet holes in the wall. They’re supposedly from the attempted execution of a wannabe American conqueror in 1858.