We tried this place out and came away very happy. We were seated in the back dining room area which had a very nice setup. The service was great, and more importantly...the margaritas were even better! Their regular is very good, but they offer different flavors (try the mango) margaritas to choose from.
We had duck breast quesadillas for our appetizer, and I had the carne asada enchiladas for my main course. Delicious.
I don't live in NYC but I travel for work there very often; so I hate to go to the same place twice as the city has so many great dining options, but I'll try to make my way back to LA Palapa. Check it out if you want good Mexican and you are in the East Village.