There are a few restaurants connected to the hotel and Government buildings.We went to the 2 storey white building across from the hotel itself.Just ask the doorman and he will point you in the right direction.
The place is just 1 huge room with loads of tables and has the ambience of a doctors waiting room.It was packed on a Monday night at 8pm but by 9.30 we were the last people, so go early. This is not a place to impress a date or business colleague, this is all about the food.
The lamb here was superb.They told me the lamb is imported from Xinjiang and is 4-5 months old.So often in Beijing lamb is actually mutton.
The menu is nearly all lamb based, we had the steamed lamb which was massive and more than enough for 4 people.Tables around us had bbq lamb and lamb skewers and they also looked great.The grilled lamb kidneys were fantastic.
The prices are very cheap ( I suspect this is due to being subsidised by the provincial govt ). This place is definitely worth a visit.

There are two good compounds out this way for good Uigur food. One is here and one is at the Urumqi Government Office. The Xinjiang one (the one I am reviewing now) has three restuarants. The most expesnive is attached to the hotel, I havent eaten there. Then their is a midpriced one that has a similar atmosphere to banchuan as well as similar prices (mildly expensive). The last is a restuarant that is supposed to be just for the staff and is located in the basement. The latter is my favorite as it is cheap, good, and has that good old fanguanr attitude.
The Shuozhuafan is excellent and true to form is is only availible at lunch. If you are there around lunch it is a must order item, at 10 kuai why not. The fried fish is good, the nang is fresh, the kevabs are hearty and the beer is cold. It doesnt get better than this.