There are lots of restaurants, my favorite is the B at Mavrogenous 11, Tel: 27086. You'll probably need to make reservations. Sure, it's owned by a friend of mine, buts it's good anyway. The Appaloosa is one of the few restaurants on Mykonos that has mostly locally grown produce and ingredients. It's open all year long and is where Greeks eat. It is not a taverna, you could call it Progressive Greek or even nouvelle cuisine. Mavrogenous Street is just off taxi square and named after a Female Admiral Heroine. Tell Babbis Harry sent you.
The Appaloosa is not the only good restaurant in town. There is a lot of variety; some good, some bad.
Just on the right is fairly common type of establishment on Mykonos and throughout Greece for that matter: a little souvlaki or gyros joint, good for a filling, quick snack and an inexpensive way to dine if on a budget. For a meatless version (even cheaper) order the ECOLOGIKO or ecological souvlaki.
Antonini's in Taxi sq. has genuine Greek Food at decent prices. Behind City Hall by the Delos Dock: Nico's Taverna and Maky's are both non-pretentious fairly priced and authentic. A bit fancier; the Phillipi Hotel in the center of town is considered to have the best traditional food and also serves international cuisine. Seating is in a pleasant garden.Tel: 22295, Kalogera 32. For fresh fish without the fanfare and extra prices, try Kounelas at the end of the waterfront.
Pictured is a traditional restaurant with paper over cloth tablecloths. Anytime you see a cloth tablecloth and fluted wine glasses you'll pay extra and not necessarily be happy about it. Learn the difference if you're on a budget or value a euro.