From the top of my head these come to mind:
TEMPO DOELOE (Sunset Road) - Sundanese
great food, but not much for anything else. Local's favorite.
MANG ENGKING - Sundanese
great food, some ambience
KETUPAT (either in Kuta or Dewi Sri Road)
very good food, well meaning service, nice ambience
There is also a branch of CAFE BETAWI in DFS Mall, but it's a casual, 20 minute kind of lunch place in my opinion.
I can't think of a local restaurant that offers great food AND great service AND great views (ambience)! For those, you might want to try the three-meal restaurants in any of the 5 star hotels.