Himal Chuli is one of the flagship veg-friendly restaurants in Madison. It's a super-small and friendly place, which can get filled up pretty quickly during peak hours, so keep that in mind. Also keep in mind that this place isn't great for groups larger than two or three, given the limited space.
I noticed that they've increased their prices, and the more sophisticated dishes (such as the ones with seitan) are $15, while their 'tarkari' (vegetarian) combo selections are around $7-9, and served with a small herbal-bean soup, a main dish, and either rice or roti (note: the roti doesn't appear to be vegan).
These are steep prices, considering the place is CASH or CHECK-ONLY, so make sure to carry at least $40 or more, if you plan to splurge on dishes.
The food is wonderful. It's fresh, light and simple. They have rotating 'tarkari' selections; the last time I went I had a combo meal with a butternut squash curry and also a spinach-blackeyed peas-potato dish.
I wish Himal Chuli were 100% vegetarian, because Madison desperately needs an all-vegetarian restaurant, but as it stands, Himal Chuli is as good as it gets.