Caballo Prieto Azabache is in a commercial neighborhood a couple of blocks inland from the Sheraton and caters mostly to businessmen and employees of the area. It is open Monday through Saturday from 8am to 10pm and does not take credit cards.
The restaurant is on one side of a large courtyard, across from what I assume is the owners' house. It is very clean and decorated with ranch implements. The food is very Mexican and very good. At lunch, you can have something off the menu or have comida corrida. This fixed-price meal, which costs 31 pesos (US$3.10), includes soup, a choice from two or three main dishes, rice, beans, handmade tortillas, and fruit water. It is usually very good. For dinner, mostly antojitos are served (taquitos, enchiladas, tostadas… ). They are inexpensive and delicious.
Although I like all of their food, I do have my favorites. For breakfast, the Huevos Ahogados (28 pesos/US$2.80) can’t be beat: two eggs poached and served in a chile-laced tomato broth accompanied by beans and handmade tortillas. For lunch, the comida corrida is the best bet, although the chiles rellenos (44 pesos/US$4.40) are pretty special. For dinner, try the picadillo enchiladas (28 pesos/US$2.80) or the flautas (28 pesos/US$2.80), which are a lot like taquitos.