We highly recommend staying at Apart El Huancar at Belgrano 851 in the center of town. Because they did not have a doble, they gave us for the same price (300 pesos) a 4-person apartment -- 2 floors, living room, dining room, kitchen, bedroom, full & half bath, & terrace, plus parking in a garage around the corner for 35 pesos per night. We like it so much we plan to stay for at least 2 nights.
Last night we ate llama picante across the river @ Picanteria y Restaurant Locoto, especialidad en comidas regionales, José de la Iglesia 1113. Good sauce, we found the the meat good tasting, somewhat like pork, but too dry. We'd like to try slow-cooking it Hawaiian-style.