For the cool drinks and the delicious local Thai fare (and some Western options like all-day breakfast and burgers) with an up-close street view in Chiang Mai old town, head to Terrace Bar and Cuisine on the first floor of Parasol Inn. The place is located right in the heart of the Sunday Walking Street where you can enjoy good food while taking a break from bargaining for souvenirs and stuff. Specialties include pad thai served in a threshing basket and the Northern-style egg noodles in curry soup (khao soi).