I've lived in Little Italy for 10 years and Terrazza is the best Italian restaurant in the area hands-down! They have the best bruschetta and fantastic pizza - even the whole wheat dough is wonderful. The pizza is baked just right; they're generous with toppings and have excellent sauce. Their latte was a perfect way to end a great meal.
Even my father was truly impressed and he's been eating at restaurants for many, many years! In fact he went back the very next day.
They have a lovely patio and the service was excellent. I highly recommend Terrazza.