Owned by an ex peace corps guy, this restaurant and bar is one of the most relaxing places to watch the sunset as it descends over the lake. The seating / tables are set out around the garden on the waterfront so there are a few insects out and about---especially at dusk---but nothing too nasty. Drinks are reasonably priced given its location, and the staff's efficient - I didn’t try the food but friends said it was fine. Top of the food list is that there are a good number of Western dishes on the menu - and as the place is owned by an American - they're done properly, not some Nepalese version of what they think it should be like!
Finding the place is a bit awkward. Near the north end of the main Lakeside shops there's a wider area in the street with a chautari tree in the middle. Mike's place is signposted down the lane. Follow the lane to the end and Mikes is on the left just before the boat hire.