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Personally, this is one of my favorite places to go. Take note, this is not like a lot of the more "authentic" mexican restaurants in the area, but the food is great. It's more of a tex-mex style menu. The sopapillas are amazing--huge and bready--we sometimes go just for those. I see other reviews that say the service is poor, but I've never had that experience. With such a seasonal town I think you have that chance wherever you go. My personal favorite is the tostada salad.
My friends and I lucked out when we selected Mrs Lady's over the "other" Mexican place in Arnold's Park. It's affordable family dining that is quirky and has really tasty food. Our service was just fine. I recommend the mini-portions for the average diner. The mini-Insane Taco was very good, and I could only finish half. My friends had a mini-chicken enchilada and a mini-broccoli & cheese enchilada which they both enjoyed a lot. We saw lots of people ordering yummy sopapillas, which we did not because we were full after our mini portions. We cracked up at the T-Shirts they sell that say, "Sopapillas are my friend." :) They don't have outdoor seating, and the outside of the restaurant is nothing special aesthetically. My friend commented that the building looked like it used to be an auto parts store. This is Okoboji, folks. Relax and enjoy!
I have heard from many people that this would be the place to eat when I come to the lakes area around the 4th of July, I am from Kansas and people from there told me to go to that rest.. I somewhat enjoyed there food but as in the service I would give it a thumbs down, they seem to panic when they have a rush, I also seen the management turn away from people when they have a problem, you know from my personal opion if I wanted to stay in buisness I would treat my customers as well as employees with lots of respect. They are the ones that make your business run* might return if the new resturant Marcos is busy.