Hauz Khas Village is the most atmospheric of Delhi's arty neighbourhoods — a cluster of boutiques, galleries, cafes, and restaurants built into and around a 14th-century reservoir complex in South Delhi. The "village" part is somewhat misleading: it is now thoroughly gentrified, but the setting is genuinely beautiful. A medieval tank (Hauz Khas means "Royal Tank") bordered by the remains of Firoz Shah's madrasa and tomb gives the neighbourhood a distinctive character that no other Delhi entertainment district can match.
The complex of ruins along the tank edge is free to enter and worth exploring even if you don't plan to eat or drink here. The Firoz Shah's tomb and the ruined madrasa beside it overlook the lake on one side and the village street on the other. In the evenings, the bars and restaurants fill with Delhi's young professional and creative class. It's one of the better places in the city to spend a warm evening outdoors.