What's the recommended way to deploy a Django app on IIS?
Take a look at the different options on the offical Windows Azure website:
Django Hello World Web Application: This tutorial explains how you can install your Django application in IIS on a Virtual Machine. Note that this is IaaS, so if you want to want to use this for a production deployment you'll probably want to scale out. This means its up to you to add the required VMs, deploy your application on all these VMs, manage updates, manage security, ...
Creating Web Sites with Django: This tutorial explains how to deploy your Django application to Windows Azure Web Sites. I think this is what you're looking for. The advantage here is that you can start free (shared with other websites, good for testing), then move to shared (still shared hosting, custom domain name, great for when you want to launch your app) and finally move to reserved (dedicated machine). The advantage here is that you can easily scale out, even to multiple reserved instances, without having to worry about deployment or managing the Virtual Machines. You can use Visual Studio or the Git/Bitbucket/TFS integration to deploy and Windows Azure Web Sites will make sure your site is deployed instantly (even if you're running in reserved mode with multiple instances)
We've been at DjangoCon this week helping people get Django Sites on Azure.
We've created a tutorial and repo to help people get started with a minimal amount of code.
Check out the forked projects to find some sweet examples attendees have made: