Fuego y Sazon has a gorgeous outdoor-indoor vibe, right across from the Curtiduria artists's space in Jalatlaco. The owner, Carlos Santiago, is an incredibly gracious host who comes from a large family of maguey growers and mezcaleros (hint - try his house mezcal, an excellent example of the Matatleco style). His menu combines traditional Oaxacan and regional elements with an international style. (For example, try the Filete Maya, a steak in a cacao-orange rub and light sauce, delicious). The chef also will prepare off-menu dishes just based on talking about what's in the kitchen and throwing out ideas. We've had some favorites this way, for example, after we were talking about chile varieties we had seen in the Tlacolula market a few days before, the chef put together a steak in a rich blended chile-chipotle sauce that was just delicious.
Living here in Oaxaca for nearly two years, this is one of our favorite restaurants, one we go to several times a month. Perhaps because it is in Jalatlaco, and so you are less likely to just walk by it, it is not as well known as its peers and not often full. But if you are going to restaurants like Casa Oaxaca and Danzantes, you want to go to Fuego y Sazon. (It may well become one of your favorites too.)