Go to your local book shop - people working at small book shops usually have a better knowledge of books. Talk to the staff and check if they have a "recommended" list.
Have you seen a movie that you liked recently. Find out if the story is based on a book. The book is always better.
If you find an author that you enjoy reading, find his/her previous books.
Keep an eye on the Man Booker Prize. This is a prize offered to writers from Commonwealth Countries (long live the queen). First they release a long list (2006 long list had 19 books) and then a short list of 6 books. The 2006 winner is "The Inheritance of Loss" by Kiran Desai. You can subscribe to email alerts on the website www.themanbookerprize.com
Try to find local authors or local stories. You will be able to relate to them.
Read book reviews. In the US the Sunday edition of New York Times has a Review section. So do The Guardian in the UK and The Age in Australia.