Kulgam is not a place to come for cosmopolitan dining. The town has a handful of small Kashmiri dhabas along the main road, serving the same dishes you would find anywhere in the valley but at half the price of Srinagar's tourist restaurants.
Try wazwan — the traditional Kashmiri multi-course meat feast — at one of the family-run places near the bus stand. A simpler everyday meal is rogan josh (lamb in a red gravy of Kashmiri chillies and fennel), goshtaba (pounded lamb meatballs in yogurt), or dum aloo (potatoes in a spiced sauce) with steamed rice. Vegetarians should ask for haakh (collard greens) or nadru (lotus root) preparations.
For tea, the local kahwa — green tea with cardamom, cinnamon, almond, and saffron — is excellent and served everywhere. Noon chai, a pink salty tea, is the everyday Kashmiri breakfast drink and an acquired taste.
The road from Kulgam to Aharbal passes orchards and roadside stalls selling apples in season; bring a few for the walk.