Staying in hotels in India can be a frustrating experience and Palace on the Ganges is a classic example.
It is such a missed opportunity and I could have easily left thinking this was one of India's best small hotels.
It has a great location and fairly well appointed rooms and decent food.
But there is so much nonsense from the managers and reception staff you could well be pulling your hair out before too long.
The irony is that at the reception there is a sign quoting Gandhi on customer service.
They stuck us in a room with no window.
The roof top restaurant is fine when they haven't closed it beacuse they are too busy!
No credit card payments - you might not find this out until you are leaving and you'll have to rush to change money with thier friends next door.
When you eat in the basement restaurant the food may be cold - the staff are very nice but they have to carry it down several flights of stairs to get it to you.
Cars are good quality but near Taj Group prices.
Do stay here because it is a great spot at the end of the Ghats but prepare to be messed about - in my experince complaining was met with arrogance and ignorance.

We stayed here for 2 nights and found it comfortable & clean. Our room had a window which faced a brick wall, but we managed OK. The little restaurant was very pleasant, good food & live music. The roof top area was great for watching the Ganges flow by. Quiet end of the Ghats. Word of warning, take cash as they don't have credit card facilities & will send you to the shop next door where the exchange rate sucks!!! Overall we loved the Varanasi experience, hope you do too!

Location is perfect to discover the ghats, some nice restaurants close by (try the Vaatika cafe a bit further on one of the first ghats : nice garden terrace and they even have quite good pizza. For good middle eastern stuff, the restaurant in the haifa hotel is recommended). Our room was beautifully decorated and clean (no windows however, but for us that was no issue). Breakfast is a little bit delusion (no fresh fruit juice for example) but as a whole we liked it.

The Palace on Ganges is neatly located next to Ganga river. Area is quiet and sports touristic infrastructure despite of being off the city center. rooms are spotless clean, furniture, wallpaper, fridge and tv very well maintained. breakfast and services are good as well. apart from hot water, you get a western standard for your money.
we had two issues with the hotel. first issue being payment: despite of their ads, the management will maintain their creditcard machine is broken and send you next door to change your money. I guess they want to make some extra. second issue: no hot water in our room. we told them once, we told them twice, but despite their reassuring hot showers (which you might appreciate in winter months) were available from 8 to 10. which is not a problem for me, but if you pay western prices in India, you should at least expect western standards as well.
I would recommend you not to book ahead and negotiate (bargain down) the price at the reception.