I am happy to report that there is lots of good Kosher food in Jerusalem. I have two specific recommendations: "Little Italy", an Italian dairy
restaurant on Keren HaYesod Street and the dairy cafeteria at the Israel Museum. The museum cafeteria has a wonderful salad bar with a whole variety of exotic salads. It also has a beautiful patio area.
I have a question: are there any kosher restaurant that serve prepaid meals on Shabbat? We tried two hotels, Prima Kings and Sheraton and only the Sheraton feeds non-guests. The food there is okay but not outstanding and at $56 per person including VAT(about 250 shekels) it was by far the most expensive meal we had in Israel.