The food in Mexico is delicious and cheap. I finally discovered the wondrous chocolaty joy of mole, and ended up ordering it at least once everywhere we went. Look for "enmoladas" on the menu. It's not an accident that "enmolada" sounds like "enchilada" -- they just mean "in mole sauce" or "in chili sauce" respectively. And don't forget the ever popular "enfuego" -- on fire!
Freshly made churros were definitely one of the culinary highlights of our visit to Mexico. It's just dough extruded by a giant spritz press, then fried and covered in coarse granulated sugar. The outside is chewy-crisp, and warm and soft on the inside. I've really only had them at Disneyland -- three bucks for one long reheated churro (still tasty) -- but for twenty pesos (about US$1.25), I had an entire bagful, freshly made, that I shared. Oh man, what an experience.
The Lebanese place (Meson de Terraplen) on the corner from where we stayed was excellent too. Very flavorful, great textures, and beautiful presentation. San Miguel has not one but TWO Lebanese restaurants. Who would have guessed?