5 Hillel Street, Jerusalem
I've been in Israel for the last week and a half for a combination of Shul business and a winter break. While here, I've met people a couple of times at the Halitatea tea house. It's tucked away behind Rehov Hillel and I, like you, would probably not have found it had it not been pointed out.
There's a lovely atmosphere, great selection of tea, good music (very un-Israeli - they lowered the volume on request) and the staff are friendly and helpful.
Halitatea, which bills itself as a 'Speciali'tea Shop', stocks a huge selection of black, green and white teas, herbal teas, flavoured rooibos and they also knocked up a excellent version of my latest indulgence, the chai latte. Tea comes in a glass pot with a delightful warmer and it's actually strong enough to enjoy, belying my British cynicism about Israeli tea. If you need a nibble, there are also breakfasts, cakes and pastries and, if you ask Gabriel, the owner, nicely, he'll give you their wifi code.
A great place to meet people, hang out, relax, pretend to be British, or buy tea accoutrements.
To find Halitatea, turn down the first passageway on the left coming from the King George end of Rehov Hillel