Dharma, or as the sign in front would indicate, "El Olivo", is a little restaurant filled with Peruvian families and a few foreigners lucky enough to have found it. It's definitely all vegetarian and I was told no eggs or dairy, although I couldn't be 100% sure, and they don't seem to know the word vegan.
It was a bit confusing so here is the system, as it was on a weekday lunchtime in May 2013:
1. You pay 10 soles per person ($3-4) when you enter, at the cashier at the door, and get a paper ticket indicating such that a waiter will take once you sit down. Find an open table or share with other guests wherever there's space.
2. Get a small plate and serve yourself salad from several choices on the table at the back of the restaurant. A waiter will bring you utensils, a bowl of soup, and an appetizer plate.
3. Choose one of several entree dishes, which will be dished up hot and served to you. Once you finish that, you'll receive a drink (tea) and a small dessert.
The service was pretty good, although it was a bit difficult to communicate even for non-Peruvian Spanish speakers. I'd recommend you try to go with someone who speaks at least a little Spanish, but you could probably make it through without.
The food was all light, but there was a lot of it and you will enjoy a good, healthy meal at an affordable price. If you're in Cusco I encourage you to check this place out, especially if you want to have a more authentic experience.
Cons: You probably won't know what you order