It is a great place to experience authentic south indian food. It gives specialities from all 4 states and good place to indulge even if you are not so fond of south indian foods. I had changed my viewpoint after having good at Malgudi. But, yeah, it comes at a price.
Price per person for a full course meal will be around Rs 400. But, this is ok for once a while experience of good food, decor and quality time.
Try out the exotic dishes from Kerala platter, followed by Appam , Kottu Paratha, malgudi special chicken, Neer Dosa etc. These are a few to recommend amongst a vast variety of good authentic dishes. If you are planning to go on Sat / Sun evenings, please reserve and go as people in Bangalore are not deterred by the price.
Lunch times are also crowded as many IT professionals go for lunch there. So, be early or bood in advance to get a place