Okay here’s the list I compiled from recommendations on the SlowTalk Message Board, Frommers, Fodors, Egullet, Chowhound and Haaretz, among other places.

Abu-Shukri
Arabesque at the American Colony Hotel
AMIGO EMIL
ARCADIA
The Armenian Tavern
Aroma
BAROOD BAR/RESTAURANT
CACAO
CAFE PARADISO
Catit
Cavalier
Darna (Moroccan)
Dolphin Yam
Doron Falafel
Eldad Ve’Zehu (French)
Fink
FOCACCIA BAR
HENRY’S CAFE
Ima
Kan Zeman
La Guta
Mahane Yehuda (in the market – kebab place)
PAPA ANDREA’S
Paradiso
Philadelphia
SEA DOLFIN (is this the same as Dolphin Yam)?
Shakra
Shalom Falafel
Shegar Restaurant (Ethiopian)
Sima
SPAGETTIM
T’Mol Shilshom
YMCA Restaurant (Le Tsriff)
Abu Gosh
Caravan Inn