Nepali and Newari

The Nepali and Newari places listed below are geared for tourists and tend to be on the expensive side, but worth it. 

Bhanchha Ghar, Kamaladi, east of the Clock tower. Nepali nouvelle cuisine, featuring such delicacies as wild boar, wild mushroom curry and buckwheat chapatis -truly wonderful.

Las Kus, in the Kathmandu Guest House, Thamel North. Does a set meal that provides a good introduction to Newari cuisine. 

Naachgbar, in the Hotel Yak & Yeti off Durbar Marg . Top-flight Nepali, Indian and Western cooking; set dinner in a palatial setting with nightly culture shows in season. 

Nepalese Kitchen, Chhetrapati. A serviceable budget version of the others listed here, demonstrating that there's more to Nepali cuisine than daal bhaat. Outdoor seating, a fire-place and live music some evenings. 

Thamel House, Thamel Northeast. A clone of Bhanchha Ghar, offering marginally cheaper vegetarian and non-vegetarian menus.

Tibetan and Chinese 

Tibetan restaurants offer some of the cheapest tourist food in Kathmandu, cheaper still are the many momo kitchens throughout the old city, notably around Mahabaudha. 

Da Hua, Bhagwan Bahal, Mountain City, in the Hotel Malla on Lekhnath Marg, Nanglo, Ganga Path (east of Durbar Square), New Mandarin for Tibetan and Chinese food, Omei etc 

Indian

Perhaps the best measure of the Indian population in Kathmandu is the number of Indian restaurants they're popping up everywhere. The more expensive ones serve food every bit as good as you'll find in India, and even the cheapies (mostly around New Road) do some fine pure vegetarian dishes.

Gbar-e-Kebab, on Durbar Marg, Moti MahaI on Durbar Marg, New Kebab Corner in Hotel Gautam, Shere Punjab, Tripti etc

European 

G's Terrace on Thamel North, la Cimbali, la Dolce Vita Kathmandu's most upscale Italian restaurant, Micky Pizza Hut, Simply Shutters,  Classy bistro with a menu du jour, featuring French and other Continental specialties. 


Vegetarian 

There are only a few all-vegetarian tourist restaurants worthy of recommendation, but every restaurant serves at least a few meatless dishes; even Tibetan places will usually do vegetable momo. 

Nirmala on Thamel Northwest, 
Paradise has Italian, Mexican, Indian, Skala on Chhetrapati Thamel Nice garden seating.