This restaurant-café is a great breakfast, lunch and dinner spot, located on a quaint little square close to Váci Street. The cuisine is Hungarian and French, with some Italian pastas on the menu. When the weather is nice it's best to get a table outside to take in the atmosphere.
The owner also has a cheese shop, so be sure to try the cheese plate.
Insider tip: There's a nice, 19-room boutique hotel above the restaurant, Gerlóczy Rooms deLux, with great reviews.