Pai hotel
Great Leaf Idli. Excellent Upma. A decent thaali for dinner. please note this is Pai HOTEL, and not Pai Restaurant, which ISN'T as good. Based on the recommendation, i and other members of my family did try out idly, but it was not that amazing as i was expecting
There are a handful of local restaurants and dhabas in the town proper including a couple of good options at the end of the main road where it hits Gokarna Beach.
Excellent local restaurants on the right just before the arch that leads into the main street. Incredibly cheap all-you-can-eat thalis, just don't drink the regular water though; buy yourself some bottled water. Street food is good, particularly the little fried pies and bhel puri. And don't forget to enjoy fish pomfret, kingfish, seer being the popular ones served fried, roasted or curried; as you like it.
All the beaches have basic accommodation and beach shacks in season serving food and drink.
In Namaste cafe at Om beach you can get Mexican, Israeli and Indian food. Don't forget to taste delicious sea food like Prawn Masala and King Fish Sizzler. Some Nepali people also run a really good restaurant from a straw and bamboo hut on Kudlee beach.