you would be forgiven for thinking you're walking into a New York nightclub, were it not for the pictures of the Beijing Olympic Games of 2008 on the walls. From here, there's a choice of two venues, the downstairs dining area, marked out with a neon sign, for lunchtime dim sum or à la carte and dinner menus; or the Blue Lagoon Oriental Lounge, for more formal dining and corporate functions, if you wish to continue with the nightclub theme.

As a departure from the old-style red drapery and tanks of goldfish that pervade Chinese restaurants across the country, the downstairs restaurant, where we enjoyed our meal, is bright, modern and clean, with large Chinese letters on the walls.

Upstairs, the atmosphere is much more sophisticated, where you follow illuminated stairs to a sumptuous evening room, the Blue Lagoon Oriental Lounge, which has live jazz on Friday and Saturday nights - and there was live jazz promised later in the evening for our Wednesday evening visit too. An extensive refurbishment throughout 2009 also means that upstairs have the most modern and upmarket toilets you are likely to see in Cambridge (the taps in the sinks even create an ingenious mini-waterfall effect), and the upstairs lounge also boasts a ballroom and it is "probably the only place in Cambridge with a proper dance floor".

The downstairs area still does no scrimp on quality - there's an extensive choice of lunchtime dim sum and a range of set menus that will satisfy most tastes, including one which is exclusively vegetarian, containing a hot platter of vegetables, tofu soup and tofu in a black bean sauce. Our resident meat-eater came away having sampled a veritable meat feast: barbecued ribs followed by sizzling beef with onion and black pepper, with special friend rice which incorporated gigantic prawns. The vegetarian in our party went from spring rolls followed by the unexpectedly hot spicy bamboo shoots and Chinese mushroom. Portions do not appear to be particularly generous when they arrive on the plate, but appearances can be deceiving, as neither of us were able to finish our meals as we were full.

Judging by our fellow diners, this is not just for the Cambridge elite - students, business folk and also members of the local Chinese community were enjoying the Cantonese Hong Kong cuisine, at prices that were refreshingly cheaper than the grand surroundings would suggest.

The service was welcoming, if a little rushed, but judging by the constant flow of diners throughout our evening, including one office group and a girl ordering a takeaway, this was hardly surprising. We were a little disappointed that the 'optional' service charge was added to the bill, but the service itself was polite, friendly and professional.

Although more low-key at street level that the flashier Asia, Charlie Chan is definitely the classic option if you want to make your Cambridge Chinese feel special.