Ah, Kathy, you are right up my alley here! We love all of New Mexico but especially northern NM and have a vacation home up the mountain from Taos. As far as Santa Fe, I definitely second Kathy's (ChatKat) recommendation of Pasquales. It's a fun place with great food! A hotel we have liked is the St. Francis, which is about a half-block from Pasquales and therefore a great location for walking around to all the downtown shops and galleries. Small rooms in some cases but reasonably priced for Santa Fe. (It has been several years since we have been there, so I hope its standards haven't changed.)
As far as Taos, restaurants I can recommend are: Orlando's (a not-to-be-missed family cafe with wonderful, simple, inexpensive New Mexico food); Antonio's (interior Mexico type food, very fresh, nice service, recently moved to a new location in Ranchos de Taos we haven't visited but will try out in a couple of weeks); the Trading Post (varied menu, lovely patio area and service in the warm months, a little more expensive, especially in the evening; a dessert called a Napoleon that we have heard of people driving all the way from Colorado just to have!); and the Apple Tree (New Mexican food a half-block off the plaza). There are more good places, so just ask if you have specific questions. Oh, by the way, Julia Roberts, who has a home near Taos, gets her pizza at Taos Pizza Outback, we understand, but we haven't done that yet so that recommendation would be hers rather than mine. :cool:
Gee, can you tell we like to eat? Hope this helps.