Izote or Aguila y Sol are good choices, but New Year´s eve is a BIG DEAL here, and many places have special dinners and get booked up, so I would make a resevation by phone well in advance (OK, not yet, but a few of weeks before at least). Neither is terribly expensive by US/Europe standards- $50 tops per person, and that´s with nice wine, etc., although could be done for $30 if you´re frugal. New Years day, everything is closed, and I mean everything! You will be lucky to find a Sanborn´s open. A nice thing to do, however, is go to Teotihuacan, as it is a local tradition to climb the Pyramide del Sol on New Year´s day, presumably to bring luck. It´s a little crowded, but in a nice way, that is, full of Mexican families being traditional...There´s a wierd restaurant in a cave called La Gruta out there,at one of the entrances to the site, I think you can find mention of it in Chowhounds. It´s kind of cool, and the food is actually pretty good.