Good places to eat with family in North Austin or near 35th street
Kerbey's a great recommendation for families. Also, something that's a little different (if you have kids who aren't picky eaters) is Mother's. It's vegetarian, affordable and has a great vibe and friendly staff. And don't think of vegetarian as "health nut" in this case. Some of the food is just as indulgent as anything you'd find in any diner.
I'm a happy carnivore, but I love making a trip up there from time to time.
Kerbey Lane Cafe, on Kerbey off 35th is wonderful for families-- slow service (we try to think of it as "European") but good food (local and fresh) and you can have anything anyone wants-- 24 hr. breakfast, salads, pasta, entrees, burgers, Mexican and great desserts. Hyde Park Bar and Grill on Duval and 41st-ish has terrific fries, interesting entrees, salads and soups and burgers. Both have full bars for the grown ups. The best pizza is at Little Deli on Woodrow around the 7000 block. Great salads and sandwiches, mostly outdoor seating, but really, really good pizza. For something a little dressier/gourmet, Asti in Hyde Park is great. Tacodeli on 42nd and Lamar (closes at 3) has great tacos, Torchy's on Burnet around 53rd has great tacos. My family is evenly split on our preferences for each, so we try to alternate.
Another family friendly place is phonatic (in the walmart plaza on anderson lane next to whichwich) which is a casual Vietnamese restaurant with the same owners as pho Saigon in Chinatown market. It's super clean, several TVs with kids shows, and great healthy pho and Vietnamese rice and noodle bowls. We see tons of families there. Across the plaza is yogurtland which has the best and cheapest frozen yogurt in the area
We have a three year old and love the cafe at Central Market on lamar. The food is good and there is a huge playscape. In the evenings there is often live music. At lunch the patio can get crowded. On Burnet Road, the Blue Star Cafeteria is family friendly, and a few blocks away, Phils Ice House (next to Amys ice cream) has a playscape and good burgers but can get crowded at lunchtime. The Waterloo Ice House on 2222/360 has an outdoor patio (an another playscape) with salads, burgers, etc. For a family friendly restaurant without a playscape the Z Tejas in the Arboretum is not a bad choice.