Cafe Mayu
(http://www.cafemayu.com) is on the ollantaytambo train station where you can grab a very good espresso or cappuccino as well as chocolate chip cookies and brownies. you can browse their menu for great breakfast and lunch options.
Mayupata Restaurant
Quality peruvian dishes and superb pizzas made in a firewood oven and served in a warm atmosphere. Also provides drinks at a bar attend by peruvian owner "Tio Raul". Be ready to enjoy an interesting conversation with someone who knows about the place and local culture.
Hearts Cafe
(http://www.heartscafe.org), is on avenida ventiderio, between the main square and the bridge, with views onto the inca temple-fortress. profits go to children's projects in the sacred valley. pleasant pavement dining, quality coffee, fresh and inexpensive food, book exchange, and plenty of magazines.
Quechua Blues Bar
This place is a very laid back spot, located just across the river in town. Once you cross the river, facing the ruins, look to a street on your left. The upstairs has swings and a very relaxed atmosphere, and the food is very good. Meals run about 15 soles, and lots of cool people are around at night.
El Albergue Restaurant
(http://www.elalbergue.com) within the el albergue b&b this new restaurant has a first rate open kitchen where you can see your alpaca and trout dinners being prepared. menu options include homemade fettuccine, sandwiches and great breakfast. in the evening white table cloths are spread, candles are lit, and the restaurant becomes a first rate dining experience.
KB Tambo
(http://www.kbperu.com/), a hostel, restaurant, mountain bike, and adventure tour office, has very excellent food by chef alejo, a chilean native who has lived in ollanta for 15 years. kb tambo is located just down the hill towards the ruins from the main plaza. www.kbperu.com