One of my favorite peruvian novels of all time is
La Tía Julia y el Escribidor.
Mario Vargas Llosa is generally more cynical in his appreciation of south american culture and history, but this particular book is very relaxed. It feels like Mario is sitting across from you, drinking a cup of coffee while he tells you about the affair he once had with his "aunt".
Here, just like in Gabriel García Marquez the family is important, but in another way. In the book the protagonist is shunned by his relatives and their friends due to his unorthodox love affair, and gossip of his incestuous relationship spreads like wildfire around the neighborhood. His family is far too conservative to call him out, so the situation stretches out uncomfortably, even as Mario and his aunt are shunned for their "bad behavior".
To me this is a good insight into how conservative and judgemental a latin american family can be. How they will act concerned and try to talk you out of things they feel aren't acceptable, while at the same time trying not to offend you. It also exposes one of the truisms of latin american families: You can be sure that anything eccentric that you do or say will spread like wildfire within the family,
but no one outside of it will ever know because your mother would die of shame if anybody found out.
But the novel goes beyond simply that. At its heart it is hopelessly romantic, casually familiar and matter-of-fatct-ly humorous and pessimistic about everything. And these, I think, are decidedly latin american characteristics.
Another great series of books is Julio Ramón Ribeyro's .
La Palabra del Mudo. This is a collection of short stories from the view points of stereotypical (and sometimes not so stereotypical), but very human, peruvian characters. If anyone really wants to find out how the different people that you see walking down the streets of Lima live and think. What concerns them and what motivates them. This is probably the book to read.