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Vatan is on 30th between 5th and Broadway, and yes, it's fantastic. As an Indian who's been to India several times and eaten at many Indian restaurants in the U.S., here are my favorites:

Traditional Gujarati vegetarian cuisine and most authentic overall: Vatan

For N. Indian: Banjara, E. 6th St. and 1st Ave. or Chola on 58th between 2nd and 3rd

For S. Indian: Tiffin Wallah on 28th and Lex or Madras Mahal, mentioned above

For chaat (Indian snack food): Sukhadia's - 45th between 5th and 6th. Only good, not great.

For excellent Indian fusion: Graffiti, E. 10th St. between 1st and 2nd.

For upscale French cuisine with some Indian spices: Tabla, 25th and Madison Sq. park

Not recommended: Devi, which, when I had the vegetarian tasting menu twice, was pretty disappointing both times. Tamarind looks pretty but tastes unremarkable. Not bad, just unremarkable. Also, both are on the expensive side.

I like China Mirch on Lex at about 28th Street, across from Kalustyan's. It's Indian Chinese food--a fantastic fusion.