Grand Lake / Lake Merritt Restaurants
i also live in the grand lake area. one of my absolute favorite places on grand is Autumn Moon Cafe. Super tasty breakfast (though the wait can be long unless you're an early riser)...my favorites are the waffle (melts in your mouth) and the challah french toast. Autumn Moon also has lunch (went there a couple of days ago and had an amazing cheeseburger and fries) and dinner (try the roasted chicken with mashed potatoes). Basically, you can't go wrong there. :)
also, lakeshore has a couple of options. i second the Arizmendi recommendation, their baked goods are to die for! another place that i really enjoy is Spettro; a friendly, neighborhoody place that serves up some mouthwatering pasta.
oh, and for a quick bite, Colonel Mustard's, on grand, has great hot dogs. i don't crave them too often, but when i do, i go there. their polish dog with everything rocks!
I've lived in that area for just over a year now and my favorite neighborhood restaurants are: Miss Saigon
(Vietnamese), Bangkok Palace (Thai), Mr. Sushi (you know) - these are all on Grand Ave. close to the theatre. However you MUST go to Arizmendi (on Lakeshore, across from Albertson's) for their pizza - it's a bakery that makes a special veggie pizza every day and you can get a slice, a half pie, a whole pie or a half or whole "light bake" that you finish off at home and it's *really* good!! Lynn & Liu's on Grand has great breakfasts and there's a Korean BBQ place on Grand towards downtown that is supposed to be excellent. Oh, and Holy Land restaurant on Rand (around the corner from the theatre) has homemade Jerusalem delights (don't let the woman that owns it scare you - she's just a little rough around the edges...)