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Sleek and fresh as a breath of Mediterranean Spring, Istana Restaurant and Bar offers guests a streetside cafe atmosphere in the New York Palace Hotel. Sunny yellow table linens, yellow stucco walls with decorative displays of Versace showplates, and tall, slender olive oil bottles placed on the tables all further this impression. The clean colorful lines of the tabletop design are the result of team work by the hotel's food and beverage director, Istana's chef, a graphic designer, and the restaurant's interior designer. Menu specialties include spiced baby clams served in a small copper pot; red snapper with preserved lemon and artichokes; and lemon ricotta cassatta. This 110-seat Mediterranean restaurant opened in 1997, and serves breakfast, lunch, and dinner. The daily check average is $35; four placesettings cost about $326. Showplates (wall display only): Versace. Dinnerware: Villeroy & Boch. Flatware: Oneida. Glassware: Judel. Napery: Rivolta (Italy).