Stumbled across a place called Karahi last night. According to the owner, it had been open for a few months. Excellent quality and obviously cooked with care--the food was very fresh and the sauces were homemade.
The BF ordered samosas, which I generally avoid because they're inevitably oily as hell, and heavy. But these were light and crisp. We also had a good chicken tikka masala and a rich vegetable dish (the name escapes me--something with cream). It was also clean and quiet. Maybe a little too quiet--I really hope business picks up because finding a reasonably priced restaurant in the neighborhood (let alone an Indian place!) is getting to be a problem nowadays.
Oh yeah, Christopher St, between Bleecker and Hudson.