Hsipaw has lots of food being cooked outdoors but few organized eateries. On Namtu Road, across the bridge and toward the turn off for Mr. Charles guest house, several open air eateries serve freshly deep fried veggies in a batter sort of like an Indian pakora or Japanese tempura. Very delicious. The Market has several stalls that serve snacks go well before mid-day and Shan Noodles, the main dish in the Northern Shan State, noodles in a sweet and spicy broth packed with meat and vegetables.
Mr Food Law Chun runs the backpacker restaurant on Namtu Road. Along with the usual Chinese and Shan fare, draft beer 400 kyat is available.
An Unnamed Shack across from Mr Food serves Burmese food. No menu or sign but you'll recognise it by the big pots full of curries outside. The food is good but, since it is prepared in the morning, best to go for lunch.
Maureen, an Australian woman married to a Shan, runs a café by the Dokhtawady River. Good coffee and conversation is available. Last heard, her husband was in jail so please do ask her about his well-being.