... is to do away with the program completely.
First of all, it is flat-out wrong to suggest that one person is not allowed to have an opinion about how another person spends their food stamps. The fact the the stamps come from tax money means EVERY tax payer has paid for the right to have an opinion about it. See also: subsidized health care, and how it makes everyones lifestyle everyones business (I propose all dangerous, injury-causing leisure time activities now be banned for that reason, and I will decide what is "dangerous").
Secondly, I disagree with the notion that just food is cheaper at a grocery store than healthy items, and that it isn't fair to expect poor people to eat rice every day. I am the procurer of provisions in my household of 3, so I have direct experience. "Staples" are refreshed, and used up, every month. To suggest I am being forced to supplement our meals with ten pounds of rice and a bag of potatoes every month is ludicrous, it is just intelligent home economics. Many hours of my free time are also spent in gardening every summer, and tomatoes and onions from that garden are eaten year round after I can it up, an inexpensive technology that has existed in its current form for a couple hundred years, at least.
The only way to fix the problem of "spending their food stamps on steak and lobster and junk food" is just to remove that choice completely. If someone is poor enough for food stamps, then we consult the Official US Government Dietary Needs table for the person at that sex at that age, and they get a box every 2 weeks with exactly the nutritious food they need, at the appropriate calorie level for their age, with enough snack cakes for small dessert every evening. This makes the fiscal conservatives happy... less money is being wasted. This also eliminates the ignorance of a person not knowing which foods are nutritious, and then the government can also even out the production of agricultural products and possibly remove the need for farm subsidies. If the government KNOWS it is going to need X amount of bread each month, then it can more intelligently utilize the nations bread producers. This makes the central-government socialists happy.
Really, it's win/win/win. If the person on the dole still wants a lobster once a month, no one will stop them, they can use their allotment of cigarette money for that week.