It was easier to find than expected. We got a map from the hostel where the restaurant was pinpointed. It's about a 10 to 15 min walk from the center.
I had a hard time choosing because they offer so many good things (: At the end I went for a typical nicaraguan dish (indio viejo), but veg style with tofu. I liked that they offer some typical dishes.
Food was good, price ok.
They lose a star because they say to be a vegetarian restaurant but do offer some non-vegetarian dishes with chicken.
Updated from previous review on Wednesday March 04, 2015
Cons: non-vegeterian dishes