Although it is a guesthouse, and doesn't at all appear to be fine-dining, this is a restaurant that won't be found by most and that is truly a shame because it has top notch food. Try any of the coconut curries, and the Chicken Satay.  All of the menu items are easily worth double the price they are charging for them.  The staff is super-friendly and the owner is American who is not afraid to admit that "he has nothing to do with why the food is so good,". Hilarious that he would be so candid about it. 

Go here!  you won't regret it!  Oh, and you get free internet when you eat there.