KENDRA GASH and Josh Lelah, partners in The Gem Restaurant, have a real winner going despite the handicap of being in the far depths of a downtown courtyard (Caramel Square) and city ordinances not allowing a lighted menu box near the sidewalk on San Carlos, or even twinkling fairy lights on the front of their establishment to attract customers. They’ve had to resort to a large OPEN sign in a front window, a basket of menus and four-course and early bird specials leaflets by the entrance door, which in no way hints at the elegant food inside complemented with the niceties of double-clothed tables, candlelight and fresh flowers. Josh, the food and beverage director, sometimes acts as greeter, and serves tables. Kendra is active in the kitchen, having been trained at the San Francisco Culinary Academy, makes all the superb pastries, generally acts as hostess, and also serves tables: a busy schedule of duties for these young owners, but that comes with owning a first-time restaurant and having high standards. They were both formerly with Scott’s Seafood Restaurant in Walnut Creek. Sous chef VulfranoGarcia does a superb job, as do Juanita and Luis Garcia, who do prep work and garde manger duties. Needless to say, they are all from Oaxaca where the good chefs come from — which leads us to the question: Are there any chefs left in Oaxaca? Accomplished Oaxacan chefs and kitchen workers seem to populate virtually all the kitchens Peninsula restaurants. And happy we are for that. The Gem Salad, which commences all dinners, is crisp romaine and hearts of palm and tasty and appealing to the eye with its red and green bell pepper and red onion rings topped judiciously with a creamy house dressing. Our group of three diners ordered from the regular dinner menu which consisted of 12 appealing appetizers ranging from a baby spinach salad ($5.50) to Caesar salad for two ($11.50), prepared tableside. But as we were anticipating The Gem salad, we bypassed the appetizers, even though they were tempting. All of the dinner entrées came with marvelous whipped potatoes (run through an old fashioned European food mill), and excellent vegetables prepared in an eye-appealing manner. The entrées selected were veal piccata ($20.95) with a caper, white wine lemon and butter sauce; sand dabs ($19.95); and braised lamb shanks ($19.95) roasted with vegetables in a rich brown sauce .  All of the entrees were prepared to perfection: the veal could be cut with a fork, it was that tender; sand dabs were fresh and deliciously prepared; and the lamb shanks almost fell from the bone. We ordered wines by the glass: Lockwood Chardonnay went well with the veal and fish, and a Ventana Merlot was just right for the shanks. By the glass, wines run from $5 to $9.25. The excellent wine list is made up almost entirely of Monterey County and Napa Valley wines fairly priced at $2l for a fifth of Chateau Julien, Monterey, 2001 Gewürztraminer to a Sterling Diamond Mountain, Napa, 1998 for $76. Kendra’s housemade desserts are all $5.75 and utterly wonderful. The bread pudding served warm with a creamy vanilla sauce was as good as I’ve had it in Italy where it remains a favorite staple to this day, the flavors and textures are the ultimate in comfort food. And the crème brûlè tasted just as it should.

Next time I’m going to try the Bailey’s Irish Cream cheesecake, which is a New York cheesecake with a creamy Bailey’s topping served with a drizzle of chocolate syrup.    There are early bird specials for $14.95 from 5 to 6 p.m. which include The Gem salad, and Gem special four-course dinner with soup, Gem salad, entrée and dessert for $20.95 — but the portions are smaller than on the regular menu. This is a real gem of a restaurant waiting to be discovered.

 THE GEM RESTAURANT

(831) 625-4367

San Carlos between Ocean & Seventh in Carmel Square.

 Thursday thru Tuesday. dinner only from 5 p.m. to closing

 Reservations recommended