Pandora Tower is conveniently located at the bottom of the Dragodan Steps. Walk in the door and take the small, 3-person elevator up to the top floor. The restaurant is decorated very nicely. It boasts a beautiful balcony with a fantastic view of the city. English menus can be had and much of the staff speaks English as well. There is food, a full bar, and of course, coffee (~1 euro per large macchiato). The tiramisu is excellent. Great spot to sit and have a drink while the sun goes down over the city.
Price: $$ of $$$
Directions: (Walking) Take a left out of the U.S. Embassy Bravo Gate and walk up the hill. The Dragodan Steps are on the right, before the Hungarian Embassy. Take the steps to the bottom.