This very popular 24-hour teahouse is set off by itself in a beautiful valley. There are lots of tables with great views, and a busy kitchen serving reasonably priced Chinese dishes (NT$158 to NT$358) and dim sum, including a range of tea-infused recipes. The dumplings are a big favourite. Kitchen hours are 11am to 10pm (until 2am Fridays and Saturdays).
It takes about 25 minutes to walk here from the gondola but it's worth it. It's down its own set of stairs in the side of the mountain; look for a sign with the Chinese characters in the name. You can also take the Maokong Tour Bus Left Line or 小10 and ask to be dropped off at 邀月茶坊 (Yāoyuè Cháfāng).