Magnolia's location on Lake Austin Blvd is simply delightful. It manages to be tucked back into trees and nature despite is convenient location. Ask to sit on the patio where you can enjoy the "nature" with all the other breakfasters.
Although Magnolia is a competitor of the ever popular Kerbey Lane, their food and ambiance are different, and I have to say- I like it better for breakfast. (some people don't, and certainly the gingerbread pancakes at kerbey have their place in any breakfast lovers repetoire). The omelettes never disapoint and adding cherries and pecans to pancakes is inspired (you can make your own gourmet combo from a list of available ingredients).
This local favorite can get very crowded so be prepared to wait. Or, if you can't-- hit up the south congress location for 24 hours of yumyumyumminess.