Peppers Mexicali Cafe is a great place to stop for a lunch, they've been in business since 1996. The food is fresh and you can ask for especially hot peppers added to your meal if you like. They make a yummy bowl of vegetarian black bean soup.The blood orange margarita was fantastic- it was a little strong, so I was only able to drink one.
Peppers is located right of the main drag, so when you're done eating- you can meander up and down for some shopping. The Pacific Grove Natural History Museum is right down the street.