I spent 10 days eating in Budapest, so I feel qualified to comment on the authenticity and excellence of this establishment. Balaton is great!
Potato pancakes ($7.95) are an excellent appetizer, crispy wonderful served with sour cream. Ask about cherry juice. It goes well with the food here.
Order the Wiener Schnitzel ($21.95 large/$16.95 small) or Veal Crepes a la Hortobagy ($17.95). I also love their Stuffed Cabbage rolls ($15.95).
The schnitzel is tender and thin inside, carefully breaded and crisp fried outside. The veal crepes Hortobagy are absolutely delicious - hot savory, pancakes filled with tender veal and smothered in creamy, rich paprikash sauce.
The homemade dumplings or Speatzels here are fantastic. Fresh, tender and beautifully complemented by the sauce and the meats. ($3.95 as a side)
Portions are large. If you cannot decide what to order, try smaller appetizer portions of the entrees or have a combination plate. This will help you save room for dessert, which you should because the Hungarian strudel is really quite lovely. ($3.50)