"The Crazy Mare" is a restaurant-and-boutique-hotel on Cerro de la Cruz, in a wonderfully ramshackle wooden house full of antiques, taxidermy and old farm tools. The dining room overlooks the strait, the menu is short and focused on Patagonian classics — lamb, centolla, conger eel, smoked-fish appetisers — and there is a small but interesting wine list.
It's pricier than most places in town and unapologetically aimed at the tourist trade, but the food is good, the views are excellent at sunset, and the building itself is worth the climb up the hill. Best for a special evening rather than a quick lunch.