Big Water Grille is serving excellent food, with a beautiful wine list. I believe it has changed owners since the poor experience of Cheese Please. I live close by and have not had a bad meal in the last 2 years. http://www.bigwatergrille.com/
Fredericks serves creative fusion cuisine with a nice wine selection in a small, intimate restaurant. Highly recommended. Reservations a must. Le Bistro has fine, bistro French cooking with a very reasonably priced prix fixe 3 course menu. Every table gets an order of souffle potatoes. Last place I had those were DB Bistro in New York. Good wine selection. All these restaurants are in Incline Village, no more than 5 minutes by car from the Hyatt. Parking is no problem. Lone Eagle Grill, part of the hotel but across the street on the lake, is a spectacular setting. Lunch would be my choice because of the awesome view. Dinner is very expensive and the menu leans toward meat and game.
It was only one dinner, and it was a couple of years ago, but I had a dinner I wish I could forget at the Big Water Grille. Slow, amateurish, disinterested wait-staff; clumsy dishes poorly executed at prices that should guarantee well prepared food; fairly sterile modern room saved only by the view...
I know it might not be fair to judge from one experience, but at those prices it was pretty disheartening and hard to put behind me.
I had a pretty good meal in the restaurant there at the Hyatt during the same trip. I'd readily go there again.