Budget
Hotel Ghasel, Norzin Lam (opposite the clock tower). Tel:+975 2 323-341. Mobile: 17248826. For those pining that backstreet Indian vibe, this vegetarian restaurant is the place to come. Under the sound of Hindi songs blasting from a TV, Ghasel produces delicious dosa and thali and a range of other Indian and Bhutanese specialties. Clean, fast service and cheap.
*MK Restaurant, Centrepoint Shopping Centre (next to the main cinema hall). Popular with Japanese and serves Japanese, Bhutanese, and Indian dishes. After you order your food you'll have quite a long wait, but, for the price, this is the best restaurant in town. Go for the Japanese food, but everything is tasty.
*Hotel Tandin, Norzin Lam, just past the first traffic circle(restaurant on the first floor). Delicious Indian and Bhutanese dishes at very reasonable prices.
*Cypress Restaurant, Norzin Lam (second floor - opposite Taj Hotel). A simple restaurant serving Bhutanese and Indian dishes - huge helpings at reasonable prices.
*Shelse Restaurant, Norzin Lam (diagonally opp the the Handicraft Emporium). Tel:+975 77207771 A small place serving authentic Bhutanese cuisine. Try their homemade brew "Chankey" - a naturally fermented malt drink made from buckwheat and rice.
*Clean/spacious and Good food (Bhutanese,Indian/Continental/Chinese), prompt service, Caring staff. Lounge sitting arrangement for the after dinner drink!
Mid range
Western
*Salsa Fiesta, Bhutan's first family-run Mexican restaurant, is located right off of Chorten Lam in the Chogzin Lam car park. It is tucked away on the ground floor in the back of the building to the right of the 8-Eleven. Look for the sign board outside. In addition to the restaurant, they offer catering and delivery services [Tel. 1769 8592]. For more information, check their website: [http://www.salsafiestarestaurant.com/]
*Druk Pizza, behind Bhutan Observer Building (also known as KMT Building) at the top end of Norzin Lam. Tel:+975 2 334-543 or 17636589. Good quality pizzas on Italian style base with Bhutanese toppings plus a small selection of milk shakes and hot beverages. Free coke and a free pizza after your 10th is a bonus. Closed on Mondays.
*Jichu Drakey Bakery, Doebum Lam (a two minute walk from the swimming pool in the direction of the Memorial Chorten). An excellent selection of cakes and pastries. Take-out only.
*Swiss Bakery, Chorten Lam (above the main traffic roundabout). Sells tasty sandwiches, pies, omlets, jelly doughnuts, and excellent potato chips, among other baked goods and lunch treats. If you want a swiss cake roll, the ones here are the best in town.
*The Seasons Restaurant Pizzeria, Namsay Shopping Complex, Phenday Lam. Tel: +975 2 327-413. One of the few places in town that serves authentic pizza and Italian salads. Pizzeria also offers a good selection of filter coffees and has an outdoor patio. Closed Tuesdays.
*Tsok Dak Bakery, GF. Peling Building (directly behind Hotel Pedling). Tel:+975 2 337-961. A bakery serving a range of cakes and breads. Filter coffee available. Seating includes small terrace.
*Big Bakery a little bakery in Kawajangsa in front of the Ministry of Health. This is technically a Japanese bakery run by physically or intellectually challenged Bhutanese. Prices are high (Nu.45 for a sandwich, Nu.100 for a loaf of bread) but the quality is the best in town as of March '10.
*Cafe Klein, directly behind Druk Punjab National Bank (PNB). A small, but charasmatic restaurant serving pizza, bagels and other dough based goodies.
Chinese
*Chopstick, 2nd floor, Centre Mall, Norzin Lam. Tel:+975 2 333-601. A small restaurant specializing in Chinese dishes.
Thai
*Baan Thai Restaurant, Top floor, Karma Place (complex with Bowling Alley) Tel:+975 17112456. Authentic Thai food in the heart of Thimphu. Fast and pleasant service, the cook is from Chiang Mai. Closed Tuesdays.
*Delicia, Just up the hill from JAICA (half-way between the memorial chorten and Shopper's Store). Little cafe with a beach theme that serves pastries, a few thai dishes, soft serve ice cream, and the best french fries in Thimphu. Open until 7pm, closed Wednesdays.
Bhutanese/Indian
*Jikss Trokhang, 5F., S.D. Plaza, Norzin Lam. Tel:+975 2 333-099. A cool place to chill out. Main dining hall offers a relaxing and cozy environment, while the bar-cum-cafe (across the hall) offers live music (mostly Bhutanese and Indian rock). Serves Indian and Bhutanese dishes.
*Clean and comfortable, it offers a relaxing environment in the middle of the city, food is tasty offering Bhutanese and continental,western dishes
Traditional Bhutanese
*Bhutan Kitchen, Located above the Benez restaurant. A restaurant that tries to give you a real authentic and traditional Bhutanese food experience, with traditional music and uncompromisingly Bhutanese food. A little expensive but worth it.
*Rabten Restaurant, Above the Chubachu roundabout towards Motithang, Tel: +975 2 323-587. The best traditional Bhutanese food you can buy in Thimphu. Cooks only on advance reservation, ideally at least 1 day in advance. Not expensive and utterly worth it.
Indian
*Cargyal Restaurant, Changlam Square. Tel+975 17742488. Excellent food and fast service. Also, pleasant atmosphere, with the 1st floor arrangement of low seating and cushions giving the place a touch of the maharajah era.