Taxco's signature dish is pozole, the hominy soup that is the staple of Guerrero cuisine. Here it is typically made with pork, dried chiles, and a long list of garnishes — shredded cabbage, sliced radish, dried oregano, lime — that you add yourself at the table. The red and white versions are both common; the green version, made with tomatillo and pepitas, is the Guerrero variant and the most interesting. Order it for breakfast at the market and you will have no trouble walking uphill for the rest of the morning.
The restaurants on and around the Plaza Borda offer the obvious combination of decent food and views over the church. They are tourist-priced and variable in quality, but the terraces are worth the premium for a long lunch. El Adobe, a few blocks from the plaza, has earned a loyal following for its terrace views over the terracotta rooftops and its reliable pozole. The menú del día at smaller family restaurants away from the plaza — comidas corridas with soup, rice, a main, and a drink — gives you a better meal for a third of the price.
Street food on the steps and alleys near the market runs to tlayudas (large tortillas with black beans and toppings), empanadas filled with cheese and chile, and fried quesadillas from comals set up in doorways. These are the best meals in town, served to the people who live here, and priced accordingly.