Lian Yuan Bar
The drinks here are a little more expensive than some other places
Located a couple blocks south of Xixia District commercial center (look for the KFC sign)
A well decorated bar, and the best in New Town. The staff is very relaxed and friendly, and there are unobtrusive musical performances every night starting 8PM-9PM.
Come Back
Although traditional western coffee is hard to come by, this drink chain which can be found almost everywhere in Yinchuan sells their version of a coffee drink that can be served hot or cold. While it is still not western style coffee, it is quite good, somewhat similar to Starbucks' caramel macchiato.