Potts Point in Feb.
There is a plethora of posts over the past 6 months on this.
Potts Point is bordered by Kings Cross/Darlinghurst, Woolloomoolloo, the city, Edgecliff and Woollahra Paddington is a hop skip and a jump across Darlinghurst. Suggest you check the boards and come back with some more specific requirements if you want more information.
There are loads of good places around there! Challis Av is particularly brilliant
Lotus is a gorgeous bar to head to on Challis Avenue before heading to Fratelli Brothers (not to be confused with the amazing fratelli fresh in surrey hills) for pasta.
The bar under the gazebo hotel was done up in 2006 and is super gorgeous as well.
Also - Hugos in Kings Cross is a bit fab still. Darlinghurst Rd & Victoria St for coffee too...
2nd vote to Lotus, Challis Ave - great cocktails & food (bar menu now on)
Yellow (on Macleay Street) for good traiteur-takeaways and unreal (giggle inducing) patisserie.
Walk down the steps to Woolloomoolloo to: Manta, Otto or Nove (all on the wharf: more atmosphere than culinary fireworks but solid and fun)