Been here many times on my frequent visits to Toronto (my favorite second city). The first time I was here was around 2004, and had the Grilled Lamb Chops.....best I ever had. Myself and an ex closed the place with the owner and staff, sitting and chatting and drinking more wine. For that alone, I give it five stars.
I fell in love with this place, and actually planned a trip on a whim just to have those Grilled Lamb Chops, got in the car and started driving (10 hours). Worth the trip, as Toronto itself is always worth the trip. If you go, be sure to check out Bloor St. It is miles and miles of great restaurants---small, ethnic mom and pops, one better than the other.
But, Penolope on King St. should be your first stop. Have the Grilled Lamb Chops.