Al-Sahaby Lane is a good, while touristy, Egyptian restaurant right in the middle of Luxor, very close to the Luxor tourist souk and within walking distance of the river cruise port and the Temple of Luxor. Al-Sahaby Lane is located on the roof of the Nefertiti Hotel (there are many steps and I did not see an elevator). Reservations are not required and the restaurant is most certainly casual.
Dan and I were very interested in trying Egyptian food, so in planning our trip to Cairo, we booked a food tour shortly after we booked our flights! For any foodies planning a trip to Cairo, this is a GREAT idea (especially if you are not Egyptian and/or don’t speak Arabic) because it allows you to try really local food from vendors who may not speak English and see the heart of old Cairo (which can be quite overwhelming!). Its also a good idea if you are taking a Nile River cruise, because the food on those cruises is usually not Egyptian!