Google has not released an update to fix the lag issues on Nexus 7 (2012) after Android 5.0 Lollipop update and complaints from users are growing by the day. Currently, the solution is either clearing the cache and we explain restoring the tablet to Android KitKat.
Before restoring Google Nexus 7 to factory state, the user data will need to back up the data and download the required files. The guide requires a certain level of command prompt knowledge and is aimed at Windows users. A 7-Zip software for extracting files from .tgz file, Android SDK along with the required Java SE development kit and Nexus 7 factory image can be downloaded from the links.

Download and install the above files and notice the install location (default location: C:/Users/AppData/Local/Androidandroid-sdk) known as SDK directory. Follow the steps:
1. Run SDK manager -> under Tools check “Android SDK Platform-tools” -> under extras check ” Google USB Driver” and press install #packages -> continue with on-screen instructions.
2. The platform tools will be installed in sdk directory>platform-tools and USB drivers at extrasgoogleusb_driver.
3. Follow the YouTube link for Driver installation.
Extracting and flashing Factory image:
1. Use 7-Zip for opening the .tgz file and the.tar file inside the file -> open the directory “nakasi-jwr66y” extract the contents to sdk directory>platform-tools.
2. The extracted files should contain bootloader-grouper-4.23.img, image-nakasi-jwr66y.zip, flash-all.sh, flash-base.sh.
3. Enable fastboot mode by via adb command Code: > adb reboot-bootloader and fastboot unlock command Code: > fastboot oem unlock.
4. Use the power and volume buttons and follow the commands based on device variant, Wi-Fi(nakasi) or GSM/HSPA(nakasig)
In case the device is being sent to warranty related work relock the bootloader using Code: > fastboot oem unlock and reboot the device Code: > fastboot reboot. For a more detailed guide, users can visit here. For cache clearing method without restoring the device, click here.
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