Budget category explanation: food

For such a small line, this category can sure warrant an explanation!  I separate our budget for groceries from eating out.  I consider eating out as part of the entertainment category, as it is purely a discretionary item, but food is not.
As I mentioned in the Housing category post, I include household supplies in with our food budget.  This includes anything "consumable" like paper towels, toilet paper, diapers and wipes, first aid supplies, laundry and cleaning supplies, etc.
Our youngest is still in diapers, but we use cloth diapers during the day, so we usually only go through about one small pack of diapers per month for overnight use.
Our food budget, to be transparent, is padded a bit by the WIC program.  We receive some food (milk, produce, peanut butter, cheese, eggs, juice, cereal, bread, and beans) that is paid for by WIC.  Definitely not as much as we use, I have to buy additional, but it helps us afford more of the healthy foods our family needs.  The value is approximately $60 each month.  Our kids age out of the program when they turn five, so we'll be down to one child on WIC when my oldest daughter turns five next month, and our grocery budget will be going up.
I cook from scratch a lot.  Probably the processed food we eat the most is cereal, but usually only when we're crunched for time.  My husband eats it a lot when he has to leave for work early, and we probably eat it once a week for breakfast, and other times for snacks.
I keep our budget in check by using coupons (especially for household supplies) and limiting myself to a price of no more than 99 cents a pound for produce and $1.99 a pound for meat.  Probably about half our protein comes from beans and eggs (we get lots of free eggs from a friend that brings them to church each Sunday).
Our grocery budget is pretty much the only category I use cash for.  If I do pay for it in another way, I take out an equivalent amount of cash from that week's stash and lay it aside for the next week.  Before I take out cash the next week, I first subtract whatever I charged to a card, so I'm not spending more than my budget.  I've really found that cash has kept me within budget a lot better than using a card, because I am constantly tempted to spend more than I've budgeted, especially if I see a really good deal, but it's not a good deal if I don't have the money to pay for it.  If I run out of money, I go home, end of story. 
I used to go grocery shopping every two weeks to conserve on gas, but I've found that going once a week is easier for me to stay within budget, because I am more certain to buy the things we really need, and if I can't afford something semi- necessary, it's not hard to wait a week for it and make do with what we have at home.  I do stock up when well- used items go on sale, so I have a good pantry to work from in a pinch.