El Palomar, Mexican restaurant extraordinaire, is a Santa Cruz institution. You have two choices: sit inside in the shadowy, dramatic dining room with a vaulted ceiling that was the lobby of a ’30s hotel, featuring beams painted in the Spanish manner and a huge mural depicting a Mexican waterfront village scene, or sit out in the happy, glassed-roof conservatory-patio, where the sun always seems to shine—you might squint and think you are in Mexico itself. If you need further convincing, have an Ultimate Margarita and munch on tortilla chips still warm from the oven. El Palomar is known for its seafood dishes, which are topped with exotic sauces, but traditional Mexican favorites such as burritos and tacos are also outstanding. AE, DIS, MC, V; local checks only; lunch, dinner every day, brunch Sun; full bar; no reservation; in the Pacific Garden Mall, near Soquel Ave.