Billy Connolly used to tell a story about two well-to-do Edinburgh women. Every morning, the Morningside ladies, dressed in tweed twin sets, pearls and stout, sensible shoes, would meet in one of the city's tea rooms. Every morning, they would chat politely over tea, scones and jam. And every morning, their meeting would end with an argument about whose turn it was to pay. "For goodness sake, Jean, I'll get these." "Not at all, Moira, put your purse away."
Connolly, a professional Glaswegian, may just have been taking the mickey out of Auld Reekie. But for all their manners and chit chat, his ladies summed up outsiders' perception of Edinburgh to a tee: the arms-length politeness of its natives, the time-warp predictability of its cultural life, its Presbyterian stuffiness.
Edinburgh may have been the capital of Scotland, but for decades, it held the title in name only. Architecture and history it had by the bucketload, yet its appeal was skin deep, enough to please busloads of American tourists but not enough to kill off that small-town atmosphere. Apart from those precious four weeks every year when the festival and the fringe shocked its heart into beating again, that is. But thanks to a process of rebirth, which began at the start of the 1990s, Edinburgh now not only looks like a capital, it feels like one, too.
Even before devolution and the Scottish parliament gave it the political power to go with its status for the first time in 300 years, the city was evolving fast, developing the vibrancy and cultural mix to go with its good looks.
"It feels like a city that is on a par with any of the European cities," says Mark Fisher, editor of local fortnightly entertainment magazine The List. "But it's different. There is none of the hassle getting around that you have in bigger cities.
"Yet we still have more restaurants per head of the population than anywhere else in the UK. And, because it's a capital city, we have access to the national galleries and the theatres that you wouldn't normally expect in a city of this size."
The city is, of course, world famous for its festival. Every August, the natives rent their homes at exorbitant rates to performers and tourists, and abandon the city centre to the chaos of fire-eaters, unicyclists and jugglers. Edinburgh has also managed to corner the market in massive New Year celebrations.
But now it is possible to soak up world-class culture during the rest of the year. The national galleries have been joined by the magnificent Museum of Scotland. Telling Scotland's story from prehistoric times to the modern day over five floors, the museum bridges the gap between the old and the new Edinburghs. Right at the top is the roof terrace and the superb Tower restaurant, offering the best views across the ragged rooftoops of the Old Town to the castle.
Heading south from the castle down the Royal Mile used to offer mixed rewards, but now it is possible to enjoy the stroll all the way to Holyrood park, nestling beneath the ancient rock edifice of Arthur's Seat and Salisbury Crags. The area at the bottom of Holyrood Road, just before the Palace of Holyroodhouse, is unrecognisable from its former, largely barren self. On the left, Enric Miralles' new Scottish Parliament is slowly taking shape. On the right, the handsome new home of the Scotsman newspaper, and next door, Dynamic Earth, Scotland's own, but hugely successful, millennium dome.
Across the city, once-dowdy neighbourhoods are undergoing similar transformations. On the other side of Princes Street - the principal thoroughfare - the New Town is no longer the sole habitat of lawyers and accountants. George Street, for example, one block over and running parallel to Princes Street, used to be synonymous with stuffed-shirt Edinburgh commerce; these days it is a classic European avenue, lined down both sides with boutiques and galleries, bars and eateries. Other long-overlooked areas, such as Leith and the west end of the city, are also reawakening.
Where once were dingy boozers, there are now dozens of excellent pubs and bars. New bars, like Pivo, are appearing on an almost weekly basis, while classic venues, such as the City Cafe, continue to thrive.
At the heart of the scene is Broughton Street, at the eastern end of the New Town. Lined down both sides with a mix of good bars, it buzzes most nights of the week. My favourite remains the Outhouse, tucked out of the way in Broughton Street Lane. The ideal pre-club bar, its funky atmosphere, chilled music and (covered) beer garden attracts a relaxed crowd of diners and drinkers.
The key component of Edinburgh's after-dark rejuvenation has been its clubs. Thanks to innovative venues like the Vaults and the Honeycomb, the late-night options are no longer limited to smoky, late-night beer-and-music dens along the Cowgate (although they are still going strong).
One thing Edinburgh has never lacked has been fine hotels. The Great British, now the Balmoral, at the eastern end of Princes Street, and the Caledonian at the other end have long had an international reputation for five-star quality. But in keeping with its leading-edge image, the city can now boast a stable of top-notch boutique hotels.
The most recent addition is the Scotsman, which opened its doors last month. Converted from the shell of the newspaper's sprawling old home on North Bridge, overlooking Princes Street, it offers five-star quality but without the stiffness so often associated with Edinburgh's classier establishments.
Elsewhere, there is the Point, a minimalist designer hotel, and Rick's, a small- but-perfectly-formed establishment in a converted townhouse.
But a quick word of warning. The rapid transformation is starting to change the look of the place: the skyline is dominated by scaffolding and cranes. When the structures they surround are completed, famous vistas, from Calton Hill along Princes Street, say, or from the bridges over to Arthur's Seat, may be changed forever. Go now before it changes completely.
An insider's guide
Top 5 bars
The Baillie Bar (2 St Stephen St, tel: 0131-225 4673) Something of an institution in the Stockbridge area.
Cafe Royal Circle Bar (19 West Register St, tel: 0131-556 1884). George Melly called it "a marvellous monument to Victorian Baroque at its most confident", this well-preserved ale house acts as the ideal venue for drinking in history.
City Cafe (19 Blair St, tel: 0131-220 0125). Immortalised by Irvine Welsh, Edinburgh's original style bar still attracts the trendy set who make this their first and last call before hitting the clubs.
Human Be-In (2-8 West Crosscauseway, tel: 0131-662 8860). Opened at the end of last year, Human Be-In is a hip but relaxed hang-out serving some of the best bar food in town.
Pivo Caffé (2-6 Calton Road, tel: 0131-557 2925).
Czech-themed café/bar that prides itself on pre-club nights featuring some of the best DJs in town.
Top 5 restaurants
The Apartment (7-13 Barclay Place, tel: 0131-228 6456). Book early to enjoy the tantalising and affordable Mediterranean cuisine and a buzzing atmosphere.
Bell's Diner (7 St Stephen's St, tel: 0131-225 8116). Best burgers in town.
Fishers (1 The Shore, Leith, tel: 0131-554 5666; 58 Thistle St, 0131-225 5109). Best bet for seafood, either at the somewhat cramped Leith restaurant or at the roomier city centre venue.
Number One (1 Princes Street, tel: 0131-557 6727). An opulent dining experience awaits those with the budget to sample the delights on the contemporary Scottish menu.
Restaurant Martin Wishart (54 The Shore, Leith, tel: 0131-553 3557). No frills, just Michelin Star dining at this classic French restaurant named after its chef.
Top 5 things to do
Edinburgh Zoo (Corstorphine Rd, tel: 0131-334 9171). Time your arrival to catch the penguin parade.
Museum Of Scotland (Chambers St, tel: 0131-247 4219). This stunning new building houses five exhibitions devoted solely to the history of Scotland.
Mary King's Close Tours (meet at Mercat Cross next to St Giles' Cathedral, tel: 0131- 557 6464). Explore the network of streets forming Edinburgh's underground city.
Royal Botanic Garden (Inverleith Row, tel: 0131-552 7171). Soak up the sun and take in the panoramic views of the city amid a wealth of flora from around the world.
Royal Yacht Britannia (Ocean Drive, Leith, tel: 0131-555 5566). A strangely satisfying tourist attraction that shows how the royals lived in luxury during their trips around the globe.
