We stayed in Gorga, near the city of Alcoi. To me, the best part of the trip foodwise was buying in the markets and eating at home -- the produce, the eggs, the milk, the meat... but we also found a couple of nice restaurants.
The restaurant in Millena, 2.5 km north of Gorga, had excellent paella and hands-down the best lamb chops I have ever eaten -- really just an amazing degree of flavor -- though I guess this is attributable as much to the quality of the meat that's available as to skill in the kitchen.
The Hotel Els Frares in Quatretondeta, 4 km east of Gorga, is excellent and much fancier than anything else in the immediate vicinity. We had their tasting menu and went away feeling very happy indeed; I don't remember specific dishes, just a general feeling of deep contentment. Also the British proprietor is friendly. They have a website, link below.
If you ever are anywhere in the region make absolutely sure to try the ice cream -- my favorite brands were Jijonensa and Alicante. Jijonensa has a Truffel flavor and a Nougat flavor, both are amazing. Oh, speaking of flavors, all the brands have a flavor called Nata (cream), which is just ice cream without any flavoring in it; and Ibense has a flavor called Mantecao (lard), which I found amazing and perplexing but did not try.