Kathmandu is chock-full of world class restaurants of every stripe - Japanese, Italian, Korean, Russian (yes, Russian), Israeli, Chinese, Indian (north and south), Mexican, Tibetan, Thai, even an Irish Pub. Still haven't found a Greek restaurant here, though.
My personal idea of heavenly cuisine is at Momo Tarou. Again, there are many excellent Japanese restaurants in town...but I like this small, friendly place near Bhagavati Bahal just above Thamel Chowk.
Which to get for my victory dinner after the Indian Embassy - the eggplant sauteed in miso with sesame seeds, or the avocado sushi? I got the avocado maki above (minus the Asahi beer) for 250NRs (about four dollars US). Ah, the sting of wasabi and the sweet tang of pickled ginger.
Momo Tarou also has all manner of Japanese udon and noodle dishes, as well as some Nepali fare.
Darn, I forgot to take a photo of my daal-bhaat-aato at the Thakali Kitchen on Z Street today (not to be confused with Thakali Bancha Ghar or other similarly named joints). Daal-bhaat is of course the national Nepali dish - daal (lentils), bhaat (rice), aloo piroo (spicy potatos), gundruk or wilted spinach and another vegetable side dish, usually with yogurt for dessert. But the Thakali Kitchen serves their thali with maize or corn grains instead of rice (just ask for it - it takes a few extra minutes) which makes great change. For 85 Nrs you get a refill-able tray of daal, aato (corn) and vegetables.
For those who miss south Indian cuisine (yours truly), Dudh Sagar on Kantipath near Bhothahity is a good bet, though not nearly as good as the sweets shop in Pulchowk that inexplicably turned into a tandoor joint this year. Idlys, vada, uttappam, and dosa - all the rice-based dishes of the south - are all available. Don't expect Saravana Bhavan quality though...and there's no fresh lime soda. But it's clean and very affordable. My favourite is the Paneer Special Uttapam (a sort of thick rice pancake with chunks of cottage cheese in the batter). I make sure I say "mirchi nahi chahiye," or they will sprinkle it with green chilis, which I can't stomach.
Speaking of good old SB's...guys, if you can have branches in the US and Malaysia and Singapore, why not Nepal?