Just returned from Paphos and I have to say, albeit bearing in mind the poor exchange rate over previous years, that the prices are in the main higher than here in the UK.
We found it expensive and as ever your best bet is the supermarkets where again it pays to shop around.
Ironically after selecting the 3 course set meal at Caballeros/Oasen Restaurant on the seafront in Paphos on the first night and having received a narrow bottomed 'pint' (it clearly wasn't a pint) I looked closely to see the price. At 1.50 euros it was the cheapest we found. Pity they had to stripe us up on garlic bread, at 4.80 euros, a small bowl of mixed salad, lettuce, cucumber and tomato at 6 euros, half bowls of soup, miniscule portions, Diane sauce doubling up as pepper sauce, having had some peppercorns thrown in
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and apple pie that turned out to be a 5cm square of sponge cake.
Literally our first taste of Cyprus was tainted by this unfortunate visit. Avoid this restaurant like the plague.