To the left, you will see a glorious plate of traditional Icelandic food (and a mug of Irish Coffee) I got at Cafe Loki-a restaurant located across from the Hallgrímskirkja Church. This meal includes, sliced lamb on bread, mashed fish on bread, dry fish, smoked trout on bread, and fermented shark.
This meal was on the expensive side at $27, it is worth it if you want to say you tried traditional Icelandic food.
Word of Warning: I found the fermented shark tasted like nail polish remover, yet my friend found the bitter, rubbery bite to be quite tasty.