My goddaughter spent 4 months in Kathmandu this summer teaching - here is her list for Kathmandu and Boudha
Places to eat in Kathmandu
Bakery Club Cafe
Bakery club cafe is a chain of restaurants, the easiest to find is in Thamel, but there is also one just outside Boudha. Boasting good food with fair prices, Bakery club cafe also has something else interesting to offer: all of its waiters are deaf. This provides for an interesting ordering experience (no Nepali required!), and eating here also supports a great cause.
Fire and Ice
If western pizza and good ice cream are what you're craving, come to Fire and Ice. Located in Thamel, Fire and Ice has the best pizza in Kathmandu, although it's a bit more expensive than the average meal.
Located in Naxal, it's a great place to go if you're craving traditional American-style breakfast. Their waffles are served with syrup, the ice and raw vegetables are safe to eat, and the restaurant has a great location.
Places to eat in Boudha
Great view of the stupa, especially at night. They've got great breakfast, and decent prices. Very nice pizza, and their pancakes and French toast are also delicious. Located around the stupa.
A great local spot, the service is fairly slow, but their banana pancakes are fantastic, and the buff momos won't get you sick. 5 minute walk from SMD.
Slightly more touristy than the Regency, Garden Kitchen is one of Boudha's hidden gems. As its name suggests, the restaurant is in a garden outside. The pizzas are great, as are the momos, and the prices are very reasonable. 5 minute walk from SMD, on the way to stupa.
Cafe New Orleans
With a hint of the classic Starbuck's order-one-coffee-and-stay-for-hours mentality, Cafe New Orleans is a great place to relax. They have an excellent dessert menu, and their ice won't make you sick. Cafe New Orleans is located around the Stupa, with a big white sign.
Himalaya View has a great view of the Stupa, and is a great place to go at night during the full moon when the Stupa is lit up. Prices and menu selection are average, and the food is both trustworthy and tasty.
Stalls right next to SMD
The senior students frequently visit the stalls right next to SMD for momos, tea, and chow mein. The food is both cheap and delicious, but be wary; those with weak stomachs may get a bit sick at first.
Rudra Sandwich Bar
Rudra is kind of like the Nepali version of Subway. Owned by a French guy who seems to live upstairs, their sandwiches are made on baguettes and their vegetables are washed with Iodine water. Featuring luxury items like bacon and salami, their sandwiches are delicious, and the service is much faster than Garden Kitchen or Regency. If you plan on being a frequent customer, ask for one of their stamp cards; 10 sandwiches gives you 1 free. They're found on the second floor around the stupa.
Located on top of the Money Mart around Stupa, Sakura is a great restaurant for those with a Japanese palette. Prices are reasonable, but service is slow.
Just returned from a week and a half in Kathmandu and found good food at the following places:
Krishnarpan at Dwarika's hotel was the definite highlight of the trip, set menu options of between 6 and 22 course Newari meals in a beautiful room. A bit of a splurge by local prices, but very much worth it. (We stayed at the hotel which was a treat in itself, but the fare served in the casual restaurant Toran was pretty hit and miss, although they have a very good noodle soup from a sherpa recipe). Good cocktails are available in the Fusion lounge supplied with a homemade and suprisingly light chanachur mix. Reservations are a definite for Krishnarpan.
I stumbled across a decent French cafe called Chez Caroline while strolling through the Baber Mahal Revisited complex. Well made food, they have a delicious star anise ice cream, a lengthy pastry menu and good sodas. The complex itself is a tranquil spot, a Rana era mansion converted into boutique shops worth checking out. The only downside is that it's a bit off the beaten track. (My wife and I tried to return to the cafe for a second meal on our last day but were stymied by maoist demonstrations in the neighbourhood).
One place that came highly reccommended, but we weren't able to find was Nepali Chulo on Durbar Margh, I'll be on the look out for it next time we visit. I'm still wistful thinking of it, especially as we ended up settling for fairly generic food at the Annapurna.
I had no real issues as to the safeness anywhere I ate, but I'm based in Dhaka currently and restaurant standards are pretty similar between the two cities. If you're in the mood for something comfortable and familiar, there are a number of western places in the Thamel district, mostly uninspired, although Kilroy's was decent.