This small space on the outskirts of the Plaza dishes up New Mexican favorites, and some of Santa Fe's finest spicy chile, along with time-tested 'merican diner classics. Being one of the few restaurants open for service in the wee hours, beginning at 7:30am, Palacio Cafe's breakfast burritos ($8-9) are among the best, and biggest, in town. Breakfast tacos are a good option if you are eating in ($9) as are American breakfast standards, including waffles ($8), eggs Benedict ($9.50) and even French toast ($8.50). The long list of options—both New Mexican and American comfort food—extends to the lunch menu. Daily specials can include tamales and a spot-on Frito pie, while regular menu items range from a veggie enchilada plate and a smothered chicharron and bean burrito (both $10.50) to deli-style sandwiches, such as a straight-up classic tuna salad sandwich on wheat bread ($9), and large salads including an oft-ordered pear salad piled high with candied pecans and crumbled blue cheese ($9). Palacio Cafe's homemade foods play to the needs of all who are hungry: locals and visitors, adults and kids, those who can take the heat, and those who can't; all of which are reasons why you'll frequently find a line out the door that's most definitely worth waiting in.