Sedona is breathtaking - red rock and dirt/ground appearing out of nowhere on the drive up. The mountains and sunsets make for amazing memories.
Where to stay: One terrific, luxurious place if you want to spend $250ish a night is the Hilton. Their suites provide you with privacy if you want the kids in their own space, and a fireplace in the master for you.
Alternatively, we just stayed for $150/night at the Kings Ransom and the room was clean (takes pets) and the restaurant a huge surprise turns out to be one of the best places in town with a chef from Pheonix who just opened his place there.
Food at Elota was mexican/fusionish and was amazing. Have the skirt steak in blue cheese and the corn chowder/soup…tomato and cheese appetizer, everything was excellent. And you didn’t have to brave the cold to go out for dinner.
I spent some time looking through reviews on tripadvisor for restaurants. Here’s what I found people recommended: The only other one we went to was Picazzos. Every bit as good as they said. Pizza was thin crust and special, salads excellent. Great food, if you want to avoid take out and sit in a nice atmosphere. Even for kids.
Pizza place with some variety to the menu - italian with great pizza - http://www.picazzos.com/
Great selection/variety to the menu, good reviews - http://www.heartlinecafe.com
Cowboy club - family ok too - but angus steaks etc make it more high end in pricing. http://www.cowboyclub.com/
Supposed to be a great mexican place, chef had restaurant in phoenix, a little different in taste. Was terrific! http://www.kingsransomsedona.com/Cafe_Elote_Dinner_Menu.pdf
Nicer Places, less Family Friendly
http://www.dahlanddiluca.com/
http://www.tlaq.com/store_El_Rincon.cfm - at tlaquepaque shopping center
http://www.shugrues.com/