Rodakio is a nice restaurant at Platia Iroon, in the heart of Psiri. They have a nice terrace at the square, where you can have delicious greek specialities.
Favorite Dish: Rodakio Melitsanes (aubergines with cheese...)
This joint is located in Psiri, which is the cooler, hipper, more local part of Athens. It's right in Platia Iroon, so it's very easy to find. They have live bouzouki almost every night, but they don't start until after 9pm. The food is very good, but it's not cheap. Probably better than the meals you would get up the hill in Plaka, but about the same price. Definitely worth checking out.
Favorite Dish: everything was great