Try LaCasbah (sp?) on Bathurst north of Lawrence (just south of the Baycrest Centre for Geriatric Health). It specializes in Moroccan cuisine. The food is very tasty, delicate flavours - lots of saffron, dried fruit, Middle Eastern grains. Mostly traditional dishes (tagines etc). The couple who runs it are lovely people, very friendly. Definitely worth a visit.
For a contemporary take on Middle Eastern cuisines, try the recently opened 93 Harbord (located as the name suggests). I haven't yet been, but several friends have testified to the excellence of the food, and it has been well reviewed. The chef uses traditional ingredients and dishes from a variety of Middle Eastern cuisines (I think his primary focus is Palestinian, Morrocan and Egyptian food), and reworks them or marries them with European styles. I believe that 93 Harbord is more expensive than LaCasbah, and differs much from the former's traditional approach. So these are two good choices for very different forms of Middle Eastern cuisine.