Local dining in Nepal can be quite an experience & a surprise to find such excellent food for so cheep, many times only $.50 US & almost never $3. I had a meal many times for a quarter. It all depends on your likes though. The more local the cuisine & resturant, usually the cheaper its going to be. The more westernizied it is, the more it will be.
To give specific directions to anyplace in Kathmandu is almost impossible because they do not have street names & addresses per se. You can only give general directions & landmarks.
The Blue Fox is located just off the Jawlakhel choke on the same side as the Walls ice cream/Bakery Cafe, with said cafe on your right side. It serves a variety of Nepali, Indian & some Tibetian dishes. The Tikkari chicken & naan (type of bread) were my favorites. The water is filtered but drink at your own risk.
The MO-MO shack serves MO-MOs & only MO-MOs. It also is off the choke. If you walk around the NTC building on your left side keep going till you pass a corner store. It's right after it & has green doors. Learn a little Nepali because they speak very little English. A plate of MO-MOs costs about a quarter. Don't drink the water.