There is certainly more than one restaurant in Frigiliana, I can think of eight off the top of my head and that's not counting tapas bars.
My favourites are Las Chinas, very good and very cheap, and a more expensive one in the square in the centre opposite the church, most of its tables are outside and the food and atmosphere are very good. The one near the tourist information office is good too with extensive views over the hills opposite the village.
Having a car would make it easier to get around otherwise you'll have to bus it. There's a good connecting service to Nerja and from there you could take a trip to Malaga, well wort a visit.