Zak-OTFS provides a framework for integrated sensing & communication (ISAC) in high delay and Doppler spread environments. Pulse shaping filter design enables joint optimization of sensing and communication performance. For sensing, a localized pulse shaping filter enables input-output (I/O) relation estimates close to the physical scattering channel. For communication, orthogonality of the pulse shape on the information lattice prevents inter-symbol interference, and no time and bandwidth expansion enables full spectral efficiency. A filter simultaneously meeting all three objectives is ideal for ISAC. Existing filter designs achieve two, but not all three objectives. In this work, we design pulse shaping filters meeting all three objectives via the Isotropic Orthogonal Transform Algorithm. The proposed filters have improved spectral efficiency, data detection and sensing performance over existing filter choices.