Turkish food is quit cheap, but if you choose to go the more expensive way you can try the along Bosphorus. Aside from this, there are many other good restaurants in Istanbul where you can taste Turkish cuisine and local drinks as well.
You have the Reina, it is more of fine dining that serves mainly Mediterranean food, though it may be expensive, your money would be definitely worth it. Another fine dining restaurants is the 360 which has a great view of the city from its roof top. Sunset, Ulusm and Vogue are also a few of the other fine dining restaurants that may serve you.
If you're craving for Ottoman food, you can go to Turga and you'll surely get your moneys worth with its great service and exquisite taste. But if you're on a budget you can try out Feriye and Hidiv Kasri. But if you're going for the traditional Turkish food, and you want what's best, go for Naz. Leb-I Derya, can also serve you a sumptuous Turkish cuisine but with lesser cause.
So no matter if you're on a budget or ready to splurge on great food, Istanbul has a lot of restaurants that would really give you what you're looking for.