We have 3 Italian Restraunts in town pretty amazing for a small Japanese village!
Kaze on iie is a favourite with all those looking for a Western fix. Great Pizza and pasta with a European touch. The owner Kono san is a lovely guy and well traveled so always happy to see overseas guests.
Right in the Centre of town on the second floor so good for a bit of people watching too. It is opposite Oyu the main Onsen on the main street. Great place to go after a ski and have some Apres, usually has a few tunes playing and a great atmosphere. Together with his wife and their great team they put a lot of love into the food they serve. I have a friend from Italy that often visits Nozawa and he says it is better Italian than many places at home!