If you're looking for casual, the Bethlehem Brew Works is great. Love their beer cheese soup and meatloaf (made with beer, of course) Beers are fantastic as well—I'm a big fan of their Fegley's ESB.
If you're looking for some a bit more fancy (but right down the block) you can't go wrong with Apollo Grill. Both of these are in the downtown/Main Street area, with lots of shops. Probably need a reservation for Apollo, but not Brew Works.