There was a great article on eating in Palma in the Telegraph on Sat - see http://www.telegraph.co.uk/travel/main.jhtml?xml=/travel/2006/06/10/etseville10.xml

The places they mentioned were:

Taverna La Boveda, Carrer Botería 3 ( 0034 971 714 863). Closed Sunday.
Aramis, Calle Montenegro 1 (0034 971 725 232 ).
Ca'n Eduardo, Industria Pesquera 4 (0034 971 721 182).
Es Baluard, Placa Porta Santa Catalina 9 (0034 971 719 609 ).
Koldo Royo, Paseo Maritimo (0034 971 732 435).

but I'm afraid I've never been to any - it's always too hot to visit Palma when we're there - or pouring with rain as it was when we tried the Open Top Bus (still worth doing!)

Mediterania next door to Tito's club on the front (Paseo Maratimo) offers an excellent menu for 19 euros inclusive before 9pm. After 9pm it becomes seriously expensive a la carte.

I can certainly Reccommend a Restaurant called Tristan for a special meal. This is just outside Palma in Puerto Portals and is a Michelin starred Restaurant with prices to match, but would be hard to beat for a special meal. The food is wonderful and is also directly overlooking the harbour there with all the magnificent yachts on view. You wont be disappointed but do take your credit card.!! I've also heard good reports about Koldo Royo in Palma but hav'nt been there myself.

Best Regards - Taggy