We went to the town of Mt. Shasta recently and had also been there about four years ago. Both times we ate dinner at Serge's and had very pleasant meals. From what I can tell, this is probably the nicest restaurant in town. They call it the best-kept secret in Mt. Shasta and it probably is. Wonderful (mostly) French food with a European chef who seems to be the real deal. The restaurant is in a charming house and has outdoor seating as well. If you get a window table you'll be able to see Mount Shasta in all its glory. There's a decent wine list too. Only the service needs help, but I tend to be so grateful to find nice food in the middle of nowhere that I am certainly not as critical as I would be of a restaurant in the Bay Area.
531 Chestnut Street (at East Jessie)