We spent a night in Safed last week and were looking for a place to eat. We were told to go to the Gan Eden restaurant located about ten minutes away from the heart of Safed. Tucked away in an unassuming but quaint old Safed house, at first glance I did not think that this small dairy restaurant would dazzle me but dazzle it did. We ordered based on the waiter's recommendation (which we always do when trying a new restaurant). We sampled just about everything - bread straight from the oven, soup, fish, pasta and dessert (including a homemade modified version of a Krembo). The food was fresh, homemade and delicious. I do not even see a reason to recommend any specific dish since they were all great. And put it this way, one week later and still dreaming about the food.
Gan Eden restaurant - Har Canaan, Safed - 04-697-2434 (reservations preferred)