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Located near the bus stop that takes you to the lakes this family ran restaurant (Hospederia) offers a wide selection of dishes to suit all tastes. One warning the portions served are truly generous. If you are alone then the Tapas sized dished are probably appropriate. The main ration dishes are for the hungery ... or definitely for sharing. We would also recommend washing the food down with the delicious local natural cider the pouring of which is an art.
We stopped here after our visit to the lakes. The bus on the way back will drop you right at their door step. The place has quite a big dining hall. The service was quick and efficient. You can order A la Carté or do a menu meal. The food was hot and welcoming. Taste wise it was just about average. The Favada would be the only dish I could recommend as such. A bit pricey for the entire experience, but if you are in a hurry, it will be just fine.
We paid less per night here than one would in many youth hostels. Our concerns about having to share a washroom were unfounded: there were many clustered together and we barely saw a single fellow guest in 3 days here. The location just below the Church and shrine is unbeatable. There are buses nearby but be very careful about their exact departure locales. Luxury hotel 100 metres away can be used as splurge meal. Another eatery is a mere 30 metres away. The meals at this hospederia were great. One concern: *we were GROSSLY overcharged by the taxi that the hotel arranged to take us to Santillana del Mar on our final morn. The rate was several times we paid elsewhere for Picos cabs that we kept for entire chunks of a day. We felt ripped off, but had no option. Beware!