A new Mexican wave of restaurants has hit the city, and the latest – a three-in-one venue from the crew behind Tequila Mockingbird – might just be the best one yet. Esteban takes a detour from corn chip country to deliver vibrant, flavourful fare that’s as refreshing as it is delicious.

Downstairs, a taqueria and basement bar brings Mexican street food to an inner-city laneway. Just don’t expect the Old El Paso, tacos are made with soft corn tortillas, which are pressed in a custom-made tortilla machine from Guadalajara in Mexico. Fillings range from charcoal roasted adobo pork with tomatillo salsa to wagyu beef cheek and brisket with salsa verde. If you can’t decide, go the three signature tacos perfectly paired with three mini margs. If you’re a fan of fresh fish, there’s also four ceviches to choose from. Our favourite is the bright and punchy yellowfin tuna doused in soy, yuzu and miso mayo, and served with crunchy blue corn totopos for scooping.

For a more intimate experience, head upstairs to the restaurant. Executive group chef John Frid has put together a selection of sophisticated snacks and asado plates, which are cooked over ironbark on the kitchen’s parilla grill. Start with the tartare taco, a crispy corn shell filled with raw diced wagyu, mountain pepper and egg jam that would make both the French and Mexican proud. If you’re looking to hit the carne, you can’t beat the slow-cooked pork belly with crema ranchera and crunchy crackling pieces, or the smouldering 1kg wagyu rib eye, slathered in a porcini and mulato chilli butter.

Head downstairs to the subterranean bar where you can bunker down with the largest collection of premium tequila and mezcal in the country. The drinks list skips the shooters for a refined selection of rare and aged spirits designed for sipping and savouring. Ask for a recommendation from the bar staff or pick out a bottle from the roving tequila trolley. Margaritas are taken seriously (that means no silly slushies). If you don’t want to be a bystander, you can also build your own by selecting your spirits and specifying exactly how you want it made.

Housed in a heritage site, the split-level venue has been tastefully renovated to reflect the basement bars of Mexico City in the 1930’s. Downstairs, the subterranean taqueria and tequila bar has been kitted out with leather banquettes and booth seating, which sit alongside an impressive spirit display shelf the spans the length of the room. Upstairs in the restaurant, you’ll find an intimate space for 45, dominated by bold Mexican murals inspired by the works of Diego Rivera. Flickering candlelight and a soundtrack of Latin music create a mood as lively as the food.

Esteban is located at 1 Temperance Lane, Sydney. It opens Tues – Sat from 11:30am – 1am. For more details or to book, head to estebanrestaurant.com.au or follow them at @estebansydney.