Last time I ate at the Hotel Jay, the food was very good. It's been a few years, but I haven't heard that it's changed. It's a fixed-price, three-course meal.
The Belfry used to be one of our favorites, but recently they have been very spotty with food and service. We have actually walked out TWICE after being ignored while standing at the entrance for more than 20 minutes when it was not that busy. No acknowledgement that we were even waiting (what's so hard about saying, "I'll be with you as soon as possible, thanks for waiting"?). We've also had to return food to the kitchen, which I do NOT make a habit of doing, so that made an impression on us. Great atmosphere though.
I'm told the Jay Village Inn serves a good meal and portions are huge. I sampled someone's leftover pasta and thought it was pretty tastey. A guy from Montreal told me the other day he had a surprisingly good meal there.
The new Lodge at Jay is supposed to be good for steaks.
For a fine dining experience: Black Lantern Inn is the best, followed by Inn at Trout River.