My wife and I just came back from Arizona, including one very good meal in Sedona at Elote Cafe. In doing research on Sedona, we basically came to the conclusion that there wasn't much that was very good to eat in this little tourist town, perhaps with the exception of Elote Cafe. So we tried it and liked it very much. They don't take reservations, but it is a quite large restaurant. We were quoted a 30 minute wait on a Wednesday night at around 6:30 or 7pm. But there were two seats available at the bar, so we ate there.
Elote Cafe is an upscale Mexican restaurant that aims to use to use local ingredients as much as possible. It isn't anywhere close to the level of Frontera Grill, Mixteco Grill, etc. here in Chicago. But if you can put aside the great options for Mexican here in Chicago, Elote Cafe was pretty good. We started with a quesadilla with braised short ribs that was excellent (and a ton of food). We then had halibut with green mole. The mole was excellent. The fish was slightly overcooked, but was still quite tasty. Finally we had a braised lamb shank in a sweet and spicy ancho chili sauce. This was phenomenal and is apparently their featured dish. Margaritas and local beers were very good also.
Elote Cafe
771 State Route 179
Sedona, AZ 86336
(928) 203-0105
http://www.elotecafe.com/