Wow! Stayed at the Hilton Los Cabos - absolutely fantastic place, gorgeous ocean view. Their tacos by the infinity pool are delicious. Tried the steak taco (tender flavourful meat) and the cactus and cheese quesadilla (cactus is like a cross between okra and green pepper) which come double-wrapped in your choice of corn or flour tortillas with sauces on the side. Wish I had tried the pork and pineapple taco as well, but they serve three of the same taco or quesadilla with each order. Sun Fun Hut swim-up sushi bar is just okay, nothing special, although the tempura-style Marlin Monroe cooked roll with marlin and bacon is somewhat unusual, though too chewy. The other restaurants at the Hilton (Fenicia and a buffet restaurant) were far too expensive and non-Mexican to be worth trying.
Damiana's (San Jose del Cabo off the main square): Gorgeous courtyard patio and lovely atmosphere. Unfortunately, the food was average. Tried the guacamole, spicy mushrooms, and Mexican combo platter (chicken taco, beef tips, beans, stuffed pepper, etc.) which were generally uninspired. I did like the tasty cheese-stuffed pepper and the spicy beans, but the beef was somewhat dry. Some dishes, like surf'n'turf (choice of shrimp or lobster tail) were extremely expensive (US $42+). Somewhat dubious service (they claimed they had run out of lobster tail two hours before, but people around us were clearly eating lobster tail so our wine was free).
Pitahaya's (Sheraton Hacienda del Mar): Fantastic atmosphere and excellent service. Very expensive, and good, but not excellent, food. The crab cakes and the potstickers were decent appetizers. Blackened fish of the day (snapper) with mango/papaya salsa was enjoyable. Almond rolls stuffed with chocolate mousse were a bit bland and uninspired but at least they weren't greasy.
Tacos Los Claros (in Cabo San Lucas, on Zaragoza street): They specialize in fish tacos and quesadillas for 10-20 pesos each ($1-$2 US). Both the fish and shrimp tacos were battered and deep fried. Both the smoked marlin and mixed seafood (including octopus) tacos were fresh (not deep-fried) but too dry. Tacos do not come double-wrapped. Customers can add their own salsas, sauces, guac and veggies from a buffet on the side, including fried jalapenos and sliced cucumbers. Didn't try the scallop taco or any quesadillas. My sister was nervous about the fact that they pre-fry their fish and leave it out for use later but we didn't get sick at all. Lots of locals enjoy this roadside shack. I'd never had a fish taco before, but it wasn't as enjoyable as I had hoped. The marlin tacos we ate at a private party at the Hilton the next day were much tastier.
There was a brain taco place near Los Claros that I would try next time!
Cafeteria Recreo (San Jose del Cabo, beside the church in the main square): Avoid this place! The chicken mole was definitely disappointing, and the chicken enchiladas were covered in process cheese and tomato-soup sauce. Many locals eat there, but then again, many people eat at McDonald's. Meals include chicken soup and jamaica juice (a sweet red flower drink) for about 65 pesos ($6 US).
Bakery in San Jose del Cabo on the street behind the church: For $2 US, we got 6 little sugar cookies, a slightly sweet mini-bun filled with one tiny piece of dried pineapple, and two macaroons. Nothing special. I didn't notice anything distinctly Mexican. I can't even remember the name of the bakery!
Finally, if you're looking for fantastic high-quality jewellery, you must shop at Daniel Espinosa in Cabo San Lucas. Absolutely gorgeous, unique designs, using a variety of stones, gems and silver. It's in a little arcade somewhat across the street from Ultrafemme, and near a Bla Bla Bla shop (as the name suggests, boring silver designs).