I've been in Hangzhou for over 6 years and Grandma's remains our favorite restaurant. Our local friends say that the taste differs from one Grandma's to another but their dishes are generally good and relatively easy on the pocket.
On the downside, they don't take phone reservation so you have to be at the restaurant really early to book a table. There's usually a huge crowd of people outside waiting to be seated. If you can't come early, at least choose the time when the first batch of diners would be ready to leave.
If you want to avoid the crowd, you can have the food delivered through Dianwoba - not all dishes are available for delivery, though.
There are now many Grandma's around the city but we frequent the one in Wen'er West Rd since it's the closest to my place.
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