The Phinney Ridge / Greenwood corridor offers an increasingly rich selection of excellent neighborhood restaurants. While Stumbling Goat is my personal favorite, I recently had an excellent meal at Carmelita.
Not being a vegetarian, I have a hard time giving this otherwise-great restaurant a 5-star review. I recognize that hewing to a vegetarian-only menu demands incredible creativity and innovation (both of which Carmelita exhibits in spades), but as an enthusiastic carnivore I appreciate the (to my palate) greater breadth of flavors offered by an unrestricted ingredient list.
My personal hangups aside, Carmelita delivers a superb dining experience. The physical space is well-designed - stylish without being trendy - and thoughtfully lit. The servers were uniformly professional, but with the extra quirkiness and warmth that you want in a neighborhood place. The menu included a solid variety of ingredients and preparations, and every dish we tried was well-executed. The pricing is fair - a little steep for a neighborhood place, but well within the range ($12-$15 entrees) of other restaurants of this caliber in town.
My only other notable vegetarian benchmark here in Seattle is Cafe Flora (located in the Madison Valley), and for my money Carmelita delivers an overall more satisfying experience: more handcrafted and creative food, better prices, and a very pleasant physical and service experience. If you like good food you'll like Carmelita, but if you love to eat *and* you're a vegetarian, it may well become your favorite spot in town.