We went to Cafe Loki based on the recommendation of our tour guide. She was a local and worked there while in university because the food reminded her of her mom's cooking. The restaurant has two floors of seating, can accommodate children, and would be good for families. We ordered the Icelandic Plate (included the hakarl, or shark, but I didn't try), Mashed Fish (Plokkfiskur), and the Rye Bread with smoked trout and cottage cheese. All were good.
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