I recently got back from Cuernavaca (I took an incredible one-week spanish immersion/intensive course for professionals) and the best restaurant is "La India Bonita." The food is delicious and the margaritas are out of this world -- they are like nothing I have ever tasted before. "Las Mananitas" is very good, though pricey, but definitely worth visiting to at least sit outside for a drink and enjoy the spectacular atmosphere and the gorgeous manicured grounds.
P.S. Thanks Ed and Megnut for your responses to my query re: Cuernavaca.
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