Kashrus in Jerusalem has become extremely complicated recently. This has become exacerbated by Shmittah issues. Many restaurants have "mehadrin" hechsherim given by less-than scrupulous Kashrus organizations. I myself have seen "mehadrin" restaurants serving non-cholov yisroel food! Be forewarned!
For a great website with restaurant listings, discounts, and a dining guide, go to www.eluna.com
Bon Apetit!
Please note: JerusalemChabad.com, Chabad House of Rechavia & Nachlaot, Jerusalem, and Chabad.org take no responsibility for the kashrus of any of the establishments listed on www.eluna.com . We advise everyone to ensure that the restaurants are kosher (to the standards they follow) before dining.