Located away from the usual tourist areas in the "old city" section of Chiang Mai is Fai Bakery. Fai Bakery sells very tasty and cheap Thai pastries as well as local Thai dishes in the restaurant that is connected to the bakery. The food at the restaurant was very good and good sized for the price. The local dishes tended to be a bit on the spicy side. If you want something a little milder just ask for "no chills" and you should be ok. Overall a great place where you can mingle with the locals and get a sense of everyday life in Chiang Mai.
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