We randomly followed some locals into this fine restaurant near the cathedral and didn't regret it at all. This was the best restaurant we ate at in Toledo and definitely a great find. You can't go wrong when even the locals come to hang out and dine here.
Upstairs is a tapas bar and downstairs is a fantastic sit-down dining experience topped with friendly, attentive service.
Try the stewed partridge, a specialty of the region; bull's tail; fried asparagus; and the vegetable pie (quiche). Everything we tried was excellent. Ask the waiter for recommendations if you can't decide how to plan your meal. You won't be disappointed with their input.
Apparently they have two other locations at Calle de la Sinagoga 1 (925 22 13 92) and 6 (925 22 20 97). Bon appetit!