We found Karma as we were trying to search for another restaurant in Oia. (FYI - the streets are so narrow that GPS isn't very helpful.) I don't even remember where we were trying to go anymore because the food here was so good! They do a twist on traditional Greek dishes and it was by far our favorite place we ate while in Santorini.
The staff are very friendly, and you may even be greeted by the neighborhood cat (it just wanders around the tables). The ambiance is wonderful, but they don't have a lot of tables. I believe they do take reservations, but it would be worth the wait if they can't seat you immediately.
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