Bucharest, Romania
http://www.restaurant-mahala.ro/
Located two kilometers from the old town, at Palatul Bragadiru, just behind Parlament House. Serving tradional romanian dishes, some with modern twist.
Nice terrace and colourful interesting interior.
Not cheap on Bucharest scale, but well worth of the money.
I had Zucchini flowers stuffed with Urda cheese (34 lei) for starters and Rabbit with olives cooked in clay pot from Marginea (53 lei) for main. Both very good. For drinks, Cramposie white wine from Prince Stirbey (75 lei).