I like coffee, especially cappuccinos. My friend Justine has a fantastic list of good coffeeshops in a few places around the world; read her list too. Also, thanks to the other members of my coffee committee, Deepti, Panda, Rachee, Sagar, and Shoumik for their suggestions!
Note: When it comes to coffee, I mostly evaluate cappuccinos. This page primarily has recommendations for small and independent coffeeshops; if instead you want inexpensive or mass-market coffee, it's not hard to find. For pedants, this page additionally contains recommendations for non-coffee items.
Note: Indians mostly drink filter coffee. You can get this basically anywhere, so this list focuses on fancier and more westernized (i.e., cappuccino) places.
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KC Roasters in Bandra is the best cappuccino I have had in Mumbai.
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Blue Tokai is a good default option, with cafes in a few cities around India. There are six Mumbai locations.
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In Kala Ghoda, Kala Ghoda Cafe has good lunch options as well as coffee.
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In Churchgate, where there used to be the long-running Tea Centre, there is now Queen's Deck (neither has a website I can link to). I have visited the Queen's Deck incarnation and can say the tea is good (especially the Assam selections), but I am told it's not quite as good as the old version, especially in the food department. I didn't like the pre-mixed chai; get a black tea and add the milk yourself.