I was just in F'burg this weekend, and we ate at both The Peach Tree and Hilltop Cafe.
The Peach Tree was very good. Fortunately, we ate early since we didn't have a reservation. The dining room was packed when we left. The chilled avocado soup was kind of like guacamole, but better! Quiche had a lot of spinach in it and was also very good. And the pomegranate lemonade was a real thirst-quencher!
Hilltop Cafe was a quick 10-mile drive out US 87. We each had a seafood entree since, sadly, the acclaimed whole Red Snapper wasn't on the menu that evening. Both were very good. My stuffed shrimp and my companion's seafood pasta were excellent. Other diners near us had the Greek salad, which looked wonderful. It was a little pricey for what we got, but it was good food and a nice evening.
To add: Rather Sweet Bakery on Main Street. Rebecca Rather is the Queen of Sweet, and her pastries can be world-class if they're fresh. Haven't tried breakfast or lunch but the cafe is cozy and attractive. For breakfast, Mark at Fredericksburg Coffee serves some mean good Migas.
Come to Kerrville to eat at River's Edge...Tuscan Grill. Terrific Italian food with a chef's offering daily. Lunch Tues-Fri. Dinner, Tues-Sat and a Sunday Brunch the first Sunday of each month. I don't know if BonTerra in Fredericksburg is open again, but it was our favorite there. 814 Texas Bistro in Comfort is very good, but they have odd hours so you
might want to check. AND you must try the Alamo Springs Cafe between F'burg and Sisterdale. Their green chili cheeseburger was voted the 3rd best hamburger in Texas by Texas Monthly magazine. I didn't have that monster, but did have a great cheeseburger with the best fries and rings on the planet! It's a long, but beautiful drive down a winding country road. Ask for directions to the "Bat Cave" and the cafe is next door. Hope you have a great trip!
Not sure what your level of expectation is but food in Fredericksburg is fairly subpar. For all the newly retired faux-rancher boomers here, you'd think somebody would cash in with a great little bistro or breakfast place. The locals eat at Charlie's PuttPutt for the burger and Hilda's Tortillas for the green enchiladas and tasty refrieds (lots of lard). Drive over to Comfort to High's on High for lunch. Great food, fun place. August E's aint bad on Tues Thai Nite, but the interior is cavernous and filled with questionable art; really not a pleasant dining experience. My last trips to Hill Top were disappointing: very loud and unmemorable food except for the over-salting. As for bbq-- drive to Mason, Llano or Luling. Oh, and before it's too late and the ancient baker retires, wake up very early, stand in line, and get cinnamon rolls at Dietz's Bakery. (I'd get at least a dozen.)
August E's is fantastic!
Also, depending on what direction out of town you'll be, I've heard a lot of good things about Rose Hill Manor. I've been wanting to try it, but here's a link to their weekly changing menu page:
Peach Tree Tea Room used to be good, haven't been there in a couple of years. But on the weekend, you will need a reservation even for lunch unless you want to eat at 3:00. It's very crowded.
I'm planning on trying Great Texas BBQ on the south end of Main next trip there.
Mamacitas has a location on East Main. I love their Queso Chihuahua - yum. Their chili relleno is decent as are their fajitas. I like the shrimp fajitas the best. It's decent tex-mex. Parking is very limited there and if you go at a peak time, you'll have to park around the back and climb the stairs.
Let us know what you find. There is a lot of good German food in Fredericksburg but it's been a long time since I've been to any of those restaurants so I'd better let someone with a more recent visit advise you on the German food.