I hope you know by this time that Machu Picchu is not a town, it is the place of famous ruins only. So don't expect restaurants at Machu Picchu. Ohh.. yes, I forgot, they do have a five star hotel just beside the ruins. If you want luxury you can certainly go to Machu Picchu sanctuary lodge. Some visitors when pay for a guide, the service include a lunch in Machu Picchu Sanctuary lodge. That way you can always go there. Beside that some people do not want to go back to Aguas Calientes just for lunch, instead they take lunch in this expensive lodge and continue roaming in ruins. For dinner (actually for lunch too) Aguas Calientes is the best choice. Unless you stay at Machu Picchu Sanctuary Lodge, there is no point going there to have your diner at night. You can have plenty of restaurants in Aguas Calientes. Even they have a luxurious restaurant atInkaterra Machu Picchu Hotel.
So where to dine in Aguas Calientes? There are too many places to eat here. If you just walk, within a few minutes you will get a restaurant. Local foods are really good. In the rail track they have plenty of restaurants in open place. When you feel hungry, just stop and sit in. They are cheap and most of them are good.
You can have a dinner here in less than $10.00
Av. pachacutec 156
If you go towards hot springs form Plaza on Pachacutec, it will be on your right
You can have all types of Peruvian and Mexican foods here. But It is most popular for its Pizzas.
Av. pachacutec 139
If you go towards hot springs form Plaza on Pachacutec, it will be on your left, near to Chez Maggy.
You may like the open terrace and garden here. This place is popular for Pizza, but you can try pasta and grilled chicken here, I promise they are good.
You can get your dinner or lunch here in less than $15.00
Lloque Yupanqui 4-12
If you go towards hot springs form Plaza on Pachacutec, take the small lane on your left, it will be on this lane
Most famous restaurant in Aguas Calientes. Their three course meal is cheap and favorite.
Av Imperio de Los Incas
Between the Bus station and train station in Aguas calientes
Much better looking and spacious one in this city. May be environment is best in town. Food also good. You may eat Peruvian foods or Pizza here.