I really liked the Tumwater Inn. Hospitable atmosphere and you can tell they've been there for awhile. Their business card says it is the oldest restaurant in Leavenworth - opened 1911.
The food was great. I had the snitzel - never had snitzel before, my first time and I liked it fine. Potato cakes were just right. The salad wasnt just iceberg junk, there was actually some green in it. They have burgers and fries, but dinner entrees are the way to go here.
Everybody at the table agreed that it was a place we would visit again. In my opinion its much better than the alehouses on Hwy 2.
Tumwater Inn is located 2 blocks off Highway 2. They are open 'til 9:00pm, 10:00pm Fridays and Saturdays.