Food: The food selection isn't huge, but what they do have is very good. I absolutely recommend the baked eggs (my favorite is the spinach, tomato and Swedish cheese). They come to the table in the iron skillets they were cooked in. Another favorite is the Swedish pancakes. If you've never had them before, think crepe over traditional American pancakes. They come with the most delicious jam (and whipped cream) and while the portions aren't huge, they are certainly filling.
Drinks: No alcohol here, but they have a large selection of coffee and tea drinks to choose from.
Atmosphere: Very casual environment with a few communal tables for large parties (or to make new friends) as well as private tables. The decor is very simple with wooden everything from floor to tables to cabinets. The service is a bit slow but always friendly. It is definitely not a trendy, high profile spot, and there will be tourists there with you, but if you're in the neighborhood and not in a rush, it's definitely worth a try.
AQ Kafe: 1800 Broadway, 212.541.6801