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Der Lindenbaum in downtown is great German at good prices. Always dependable. Must go to Peach Tree for lunch! Awesome. They have a fabulous multi-grain bread!
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We were in Fredericksburg about a month ago and had a wonderful breakfast at the Rathskeller. I had delicious biscuits with gravy that reminded me of childhood. So tasty...
Here's the link. There are some photos and the address but no menus as they reportedly change daily:
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We had a good meal at August E's a couple of weeks ago. Expensive for F'berg, but good food and the service was excellent.
Not as upscale, but a cool place to have lunch outside, is Silver Creek Beer Garden. I had a very good german sausage combination plate with three kinds of sausage, german potatoes, purple cabbage and sauerkraut. A guy with a guitar singing Texas music sat on the porch performing.

