Is it alright to serve best foods for azadars as in what would usually be served on happy occasions.?
Or should it be not so lavish as befitting weddings or celebrations.
What is the ruling regarding this?

It’s good to serve good food to Azadars, but it shouldn’t be too lavish (like wedding style). In the end, Azadari includes sadness and grief, so the type of food and the way the food is presented must be appropriate for that. For example, offering ten types of dessert and fancy cakes (like you’d find in a wedding or birthday party) may not be appropriate. But yes the quality of the food should be good—not cheap, low-quality food