Lost Heaven on the Bund is a Yunnan restaurant with great, reasonably priced folk cuisine from the southwest Yunnan province. It is definitely foreigner friendly, with English speaking hostesses and menus, and plays to tourists with staff dressed in the colorful traditional costumes of Yunnan. The clientele was more foreigner than local, and fairly full for a Tuesday late dinner hour.
It is housed in its own full building -- you walk upstairs into a sprawling dining room that requires the hosts to communicate via walky talky. The restaurant is right off of the Bund on Yan'an East Rd before Zhongshan East Rd, and we didn't make it up to the lounge, but they just opened one on the 3rd and 4th floors.
We ordered a lot for two, but remarkably finished almost all of it and it was pretty light. The papaya salad was richer than I'm used to but good. Sauteed kale was super garlicky and yummy. Shrimp spring rolls looked more like cylindrical shrimp cakes with dipping sauce but were light for being fried. Tibetan beef was delicious, and I liked the pork with lettuce wrap. All of this plus pu'ur chrysanthemum tea for roughly 350rmb. Good deal.
17 Yan'an Dong Lu, between Sichuan Nan Lu and Zhongshan Dong Lu