We stayed two nights in Dalat in May 2011. We tried a number of restaurants recommended on Tripadvisor and in the Lonely Planet (including Da Quy and V Cafe). We came across Nam Phan when walking around the french district one day. I am really surprised that no-one before now has reviewed it as it was by FAR the best food we had in Dalat, and some of the best we had in our month long trip around Vietnam. (I'm equally surprised that so many people rate Da Quy and V Cafe - Da Quy is ok, but it's pretty average, and the pizza I had in V Cafe was doughy and oily, the worst I've had in years).
Nam Phan is not on the tourist trail and feels more aimed at well-off Vietnamese. It's situated in a beautiful french mansion on the hill, with beautiful views over the lake. It's very stylishly decorated and the balcony (where there are just three tables) is great for a special occasion.
We were there off-season, on a Monday night and so were the only people there all night! It was a bit weird being the only ones there but we got excellent service as a result.
The food is delicious and the portions massive. My boyfriend is vegetarian and found it easy to find interesting things to eat. I kept the receipt so can tell you that we had:
Shrimps & Pork Pan-Cake Served with Fresh Vegetable (75,000 Dong/$3.6)
Gia Đinh Style of Pan-cake (79,000 Dong/$3.8)
Stir Fried Scallop with Cashew Nuts in Birds Nest of Noodle (159,000 Dong/$7.6)
Deep-Fried Tofu & Tomato Sauce (99,000 Dong/$4.75)
Stir Fried Morning Glory with Vietnamese Cheese (79,000 Dong/$3.8)
Garlic Fried Rice (65,000 Dong/$3.1)
With a bottle of wine at 1,074,000 Dong/$50 (I splurged!), VAT at 10% and service at 7% the total bill was 2,006,785 Dong/$96. For the quality of the food, service and place I would say it's actually really good value, especially if you're celebrating a special ocassion. Enjoy!
p.s. Their website has photos and their menu: http://www.khaisilkcorp.com/restaurants/namphan/dl-index.html