This place is popular with travelers at the nearby youth hostel, and it's easy to see why.
Donkey Bar is more cafe than bar. The decor is a beautiful Tibetan theme, with Buddhas watching you serenely from every corner. You can borrow a book from the communal bookshelf or browse jewelry and little trinkets for sale from China's ethnic minorities.
Most of the seating at this cafe is outside, underneath big camphor trees. At night, there are more people ordering light food and alcohol off the extensive menu, but it still retains its cozy, community vibe.
Donkey Bar is located in OCT Loft. Go up the stairs by My Noodle and walk back to find it.