I was just there for a week and ate at several good places but two that stand out. The first was The Sultan's Tent which I now see got some not so hot reviews. All I can say is that my experience was really good. I had a lamb shank in what they called a tangine sauce that was amazing. The mango duck salad was tasty and there was a good wine list. I ate in the cafe part which was quite comfortable (I did not stay for the belly dancing so I can't speak about that). Service was very attentive and given other places I ate it also seemed reasonably priced.
I also had a good meal at Indochine, a whole in the wall Thai place near the Bloor subway stop. The decor is very simple, not much in the way of atmosphere but the soft shell crab was nicely done and the grilled squid was in a flavorful sauce (although could not place the spices).