I know that this is a different suggestion and most probably the thing you are not after if you want to be in Luxembourg City, walk around etc. at the same time. Otherwise this would be great as I can see that you like some class, style and athmosphere.
We ended up (a rental car needed) to a small/tiny village called Welsceid. There is a small hotel (Reuter), and a restaurant (Restaurant Am Waardkall) which has been nominated the Chain des Rotisseurs so the food is perfect. There is space for 30 people, but reservations must be made beforehand. It is nice looking, quiet feeling, candles on the table.
But there is nothing else to do, if you want, in the village, it is dead.
But if you have time; you can see some great views like the castle of Vianden. There are several castles in the area.
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