We were recommended this restaurant by the lady from the Ice Cream Parlour on the opposite street - it was absolutely lovely - they do a three course meal for 70 Dirham - basically less than £7. The food is very nicely presented and exceedingly tasty. We were very pleased.
There were six of us on our trip and the lovely little waitress was amazing, so warm and friendly. All the staff were very attentive and when we left they opened the door and stood outside and shook our hands (perhaps because we gave them a big tip - but hey they deserved it).
It was so nice that we broke our rule of returning to the same restaurant whilst on holiday - would thoroughly recommend this to anyone for lovely authentic Moroccan food, but equally if you prefer something more western they did have pizza and pasta on the menu too.
I would recommend the Moroccan Salad, followed by Beef Tagine and finished off with a gorgeous Crème Caramel!!
Tip: If you are expecting alcohol this is not the place for you as they don't serve it - but if you want great food and service it is ideal.
However don't ask me how to find this place as I got hopelessly lost in Marrakesh.