Undoubtedly the most famous food you'll find here is the momo, a local dumpling. It can be steamed or fried, stuffed with chicken, buff or veggies. The cuisines on offer are a mix of Tibetan and Indian, with a decent amount of variety available for both. Thamel hosts several restaurants of many different cuisines, ranging from local to Indian to oriental to even European. Some of these are local and some are for tourists, the latter being comparitively expensive.
Plenty of Indian restaurants can be found in Pokhara near lake side. Moondance restaurant, Lotus corner restaurant are some of the best ones in the city. Vegetarian food can be found easily in the valley.