Dosa palace can be found in a strip mall, north-east corner of Hurontario and Dundas St. Its ~10 min from the 403 exit. Dosa Palace is a very unassuming place beside an assuming collection of local eateries. They do take out or eat in.
The place itself is nothing to call home about. Its a typical indian dining style; old style cloth covered chairs, plastic tablecloths :). But it is clean and there is a bathroom.
I went with the masala dosa, my friend the chicken masala dosa, and an order of kothu rotti (mmm....carbalicious kothu rotti). I really enjoyed my dosa-it was served as a giant, thin, crispy roll, which you break off parts to eat with the potato filling. Our dosas were $7 each, very reasonable.
I like this place for the traditional south indian food it serves. Also on the menu was selection of biryani, and a few dishes I have never heard of.
Their chai was also excellent. I'll be back for more dosa. I also appreciated that on both visits this place wasnt too busy, service was timely. You don't have to worry about making reservations