Manuel's on Congress would be within walking distance. Consider taking a short taxi ride to the other side of the river to Chuy's. Both are good but I prefer Chuy's. (Famous as where one of the Bush twins got busted for using a fake ID.)
You might also want to cab it to Guerro's on South Congress (also across the river), then stay around to enjoy the scene. It's not far and pretty good.
Of course, the king of all bar scenes is 6th St, close by to your hotel.
Another possibility is Iron Cactus on 6th Street. They have very good fajitas and great margaritas. Good people watching from their upstairs deck.
Chuy's is especially recommended. Be prepared for a wait but it's worth it. And don't miss their t shirts for a take home souvenir. Again, this is locally very, very popular. It's just on the other side of Town Lake from the Hilton but I don't consider it walking distance.
Mexican restaurant for breakfast would be Las Manitas on Congress, definitely within walking distance. Food is so so but it's the place to go to see the local politicians who've walked over from City Hall. It's considered "iconic" Austin!
Geesh, how could I forget to mention the Driskill Hotel's bar. A definite must. It's within walking distance of your hotel.
Las Manitas is an institution.
Thank you for your recommendations - always appreciated!!!!!!
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