Hi! We go to Palm Springs and Desert Hot Springs every year, so I know a few places. If you want to stay in walking distance your best bet is going to be El Matador, a Mexican restaurant on Palm Drive. There's a review of El Matador in Tripadvisor and I concur - inexpensive but highly authentic Mexican food. Being from the East I have to say we don't get Mexican food like this out here, you pay a lot and it's pretty bland; in California I think these little "hole in the wall" gems are everywhere, but El Matador definitely qualifies. Also note that DHS has a Starbucks on Palm Canyon if you need a morning dose of caffeine.

El Matador is worth a stop for lunch, but the atmosphere is very basic and if you're looking for someplace special to celebrate, I'm afraid you're probably going to have to drive the twenty minutes to Palm Springs. There you will have no end of choices. Johannes (Austrian/Continental) on Arenas and Indian Canyon; one of the best in the Valley and for celebrating a honeymoon you can't go wrong. It will be close to your budget limit, though for two you should make it under $150 fine if you choose a less expensive wine. There's also a great restaurant just up the block on the corner of Arenas and Palm Canyon, I think it is called AZ Cafe (also continental), though I can't seem to find the name listed anywhere. Two other places in Palm Springs worth mentioning: Fisherman's Market on Indian Canyon is hugely popular with locals for lunch, they have all kinds of fresh fish plates, tacos, soup, etc. Rock Garden cafe on S. Palm Canyon is another local "must" for an outdoor garden morning brunch. Both of those are inexpensive and good.

Have fun - enjoy eating!