Prague is full of restaurants and to be honest all the ones I went to were not much to shout about (well, Prague is hardly the culinary capital of the world). However, this one was absolutley fantastic.
We stumbled upon it by accident and were greeted by a full restaurant where we seemed to be the only Engligh people, I'll never forget watching the table of 4 Russians finishing off a litre of Vodka between them after their meal.
The restaurant has a medievil theme and is set underground. The food here is Czech and Slovak and is great quality and while not quite priced for the locals it is a lot cheaper than those in the main tourist areas, you can get a full five courses for 550czk! The portions were so big that the waitress never turned up with her side order. We were initially annoyed but were thankful to her when we were struggling down the last morsels of the main course.
Favorite Dish: Pork and Mustard Dumplings
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Theme: Local
Comparison: less expensive than average
Prices: less than US$10
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Address: Skolska 38, Nova Mesto, Praha 1
Directions: Near to Mustek and Muzeum Metro Stations