The three of us stayed in Mangga Madu for the first 3 nights, then moved to Terunggul (sp?) for the last 2 nights. We felt pampered the entire stay with friendly, thoughtful staff, delicious breakfast and tea service, and the soothing atmosphere of the location. Ok so my hayfever worsened there, but where else can you see adorable ducklings waddling into paddies during breakfast time? Great location, and well worth the price.
Mangga Madu was perfect for us, we had an amazing view of the paddies and it had a/c. We originally was to move in to Teahouse, but the staff gently recommended a larger room. It turns out they were right because things got "too real" with the creepy crawlies in the gorgeous but non-ac Teahouse, and we had to suddenly move to the offered room in the late night. Props to the ever patient staff who lugged our heavy luggage and made up the dusty room at the very last minute and didn't complain. They've really spoiled us, and I'll be using only Kebun Indah when I next go to Ubud.
If you're ok with the bugs and no ac (one of the ceiling fans in Teahouse wasn't working), definitely go for Teahouse. It has an amazing view of the jungle and the pool, plus an outdoor bathroom. But if travelling with more than 2 people the Mangga Madu is spacious enough for all. My pick for breakfast is the jaffle combo and croissant with Bali tea. Heaven! Don't forget tea time, which I think was 4 to 6.