I was given recommendations for the Kashmir by two different local sources upon arriving in Penang. They both told me it was a place that had very good to really good Indian food and breads and was well worth a visit to dine there. Definitely a good sign when looking for a first night impression on a city's food scene.
The Kashmir is located off Penang Road and under a hotel. It is medium sized, clean and air-conditioned place decorated in typical Northern Indian attire and the owner was super friendly and talked with me a while. And that is about where the similarities to other Indian restaurants in Penang ends - because the food was even better than the recommendations made it out to be. Do get some of the different naan breads that are offered - and dip them into the northern style curries that are offered. The chicken briyani was the best I have had anywhere - with the rice being as close to perfect as you are going to find. I give it my highest recommendation for an item you should try! The sambals were all very good - and I did try several of them as well.
So besides the cab drivers, doormen, and desk clerks - add me as giving the Kashmir a recommendation as a place you should stop for dinner at!