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3 great restaurants; 1 less than satisfactory accommodation

In Reykjavik there is Sandholt, a busy bakery/restaurant with great food. If there is too long a wait for breakfast at Sandholt another place close by is Durum, a small Turkish restaurant, that is clean & cared for so everything is in it's place. Their breakfasts are half the price of other places we ate, yet satisfying & served by friendly people.
In Myvatn we had a disappointing stay at Dimmuborgir Guesthouse. We (3 adults) reserved a 1 bedroom cottage for triple use for 2 nights. The breakfasts were fine, but the cottage was too small for 3, much less the 5 possible travelers that could be accommodated in the 5 bunk beds. Bathroom was very tight, shower spray slide nearly falling off the wall. While in the shower your elbow could dislodge the glass shelf above the sink. The worst part was the intense smell of sulphur in the hot water, which we found no where else in Iceland. One member of our group thought he'd never be able to eat an egg again. It was good that we showered at Myvatn Nature Baths so we didn't have to deal with that again at the cottage. Amazingly there was a survey in the room asking for possible interest if they should build a "wellness center" on their property! Not! The management requested, & received an evaluation regarding our stay.
In Hvolsvollur we discovered Eldstocafe, a small restaurant run by a family with great lunch time food. Charming place just under the microwave tower, perhaps 100 meters before the Lava Center. Lunch was about $73. for 3, but we had beer/wine also.

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3280 posts

Sounds like you found some great places to eat.

I will point out that the water smelled like sulfur at my accommodation in Reyjakavik. In fact, I could smell sulfur in the hot/warm water everywhere I went. It's just part of being in Iceland.