Based in the charming hotel of the same name, Casa Isaítas is the best place to eat in Pájara. The varied menu includes lots of hearty soups and stews, fish pie, some interesting tapas and a reasonable selection for vegetarians (including vegetable pie at €9), served in a traditional dining room setting (that may be a bit sombre, but you can eat outside in the courtyard too).
Look for the wooden camel sign hanging outside.