Toledo has been well covered on this board and a search (top right corner of this page) will yield quite a lot of information, including http://chowhound.chow.com/topics/822835
I like "Adolfo Coleccion", very close to the cathedral: a very nice restaurant cum tapas bar cum wine bar cum boutique. http://www.grupoadolfo.com/adolfo-col...
Adolfo´s : Adolfo owns a formal restaurant, a hotel and restaurant, a small spa boutique hotel and a Gastro Bar in addition to a retail wine shop with a tapas bar. All are exemplary quality.
Furthermore, not too long ago, he opened a restaurant in the Madrid Capital 50 km from Toledo City.