The Terrazza restaurant at Caesars Palace -- the perfect garden spot for fine Italian dining at lunch, brunch and dinner -- boasts exquisite cuisine and the most beautiful exterior architecture of any restaurant in Las Vegas. The Terrazza is set in an ornate rotunda overlooking the Garden of the Gods swimming pools and gardens.

Opened Dec. 19, 1997, and specializing in country rustic Italian cuisine, the 146-seat restaurant features an exhibition kitchen with wood-burning, brick pizza oven. A la carte selections include delicate risotti, exciting antipasti, savory soups, fresh fish and seafood, succulent meats, the chef's own pastas, just-baked pizza and focaccia breads, and tempting desserts.

Terrazza Chef Alberto Tapia, formerly executive chef of Da Umberto restaurant in New York City, has re-created a traditional "cucina Italia" (Italian kitchen), with innovative interpretations of the country's various regional cuisines.

Terrazza is the perfect choice for a power lunch Wednesday through Saturday, with light pasta (penne with baby shrimp in a light Brodetto sauce, $ l 6.50) and fish selections (grilled herb-infused Mahi Mahi, $14.50) for the weight-conscious, fast-track food service (available upon request) and convenient cordless telephones.

On Sunday, the restaurant features a la carte brunch selections, adding cheese/potato pancakes served with shaved apple salad ($9.50), and Italian-style omelets ($9.50) to a variety of luncheon fare. Favorite appetizers are the Portobello Ripieno Tartufato (lightly grilled Portobello mushroom, served over lightly grilled polenta, with fontina cheese and truffle sauce, $7 lunch, $12.50 dinner) and the Gamberi A1 Vino Bianci (large fresh shrimp sauteed in herbs and shallots, with cherry tomatoes in a white wine sauce, $9.50 brunch).

Pizza and focaccia breads, wines and cocktails are served from 11 a.m. to 11 p.m. in the Terrazza's 44-seat Trattoria lounge overlooking the interior Court of Fonntains. During Las Vegas' abundant warm-weather season, dining alfresco is available on the 36-seat terrace.

Interiors, created by Wilson & Associates (Dallas, New York, Singapore, Los Angeles, Johannesburg) were inspired by sun-drenched Tuscany villas. The focal point is the interior grand rotunda that separates distinct, tiered dining areas. An atmosphere of casual elegance in the upper tiers leads to a more casual feeling in the loggia (along the poolside glass wall), where glass doors open onto a dining terrace, creating an indoor-outdoor fine dining experience. Outside, antique bronze lanterns and wall sconces illuminate the poolside colonnade.

"We saw this whole restaurant as a very romantic space," says Susan Prann, senior designer for Wilson & Associates.

The color of the walls is a warm, Tuscan plaster, accented with stone columns and mouldings. Giant, iron chandeliers with alabaster cups create a candle-light effect on regal, high ceilings. Aged, dark, heavy ceiling beams adding a rustic feeling over the bar and loggia, while white moulded plaster ceilings add an elegant flare to the upper dining tiers. Pendant fixtures of hand-painted apricot silk wash walls with a flattering glow -- a Venetian touch that embellishes the Tuscan architecture.

The flooring design was inspired by rustic Italian piazzas -- an antiqued Italian tile inlaid in two colors that complements rustic plaster walls. Custom-designed Axminster carpet echoes the tile pattern and adds a contemporary accent.

Furnishings were chosen to make the guests feel exceptionally comfortable. In the upper-tier dining areas, guests luxuriate in high-back settees, upholstered in hand-painted antiqued velvet with custom bullion fringe. Plush banquettes envelop guests in the rotunda and loggia. Service stations and wine display cabinets are reproductions of Italian antiques.

Old World architecture and interiors contrast with sophisticated, contemporary art, bridging the centuries-old tradition of fine dining and trend-setting cuisine for the new millennium. At the restaurant entrance are murals of giant wine bottles, created by Marion Westall. The large oil-on-canvas abstracts at the entry foyer and in the rotunda were painted by Robin Mitchell. Curtis Ripley crafted the colorful mixed-media-on-paper, and Robert White painted the four-panel screens on the walls in the two upper-tier dining rooms. In the loggia are two wonderful abstract mixed-media vertical panels by Robin Wassong.

Terrazza is both a casual and elegant dining spot, particularly for luncheon guests. By night, the Terrazza provides an intimate fine dining experience that will be long remembered. Terrazza luncheon service is available Wednesday through Saturday from 11:30 a.m. to 2:30 p.m. On Sunday, the brunch menu is served from 10:30 a.m. to 3 p.m.. The restaurant is open for dinner seven nights weekly, from 5:30 to 11 p.m. (last dinner seating at 10 p.m.). Reservations are recommended. Phone (702) 731-7731.