We are very thankful for Halal food in Hangzhou! There's not very many Halal eateries that we know of. In fact, we only knew this one before coming, thanks to Wm Rashidi's Air Asia Blog.
So here's Halal 1: Dong Yi Shun, Muslim Restaurant, Oriental Restaurant, located at Gaoyin Street. They have a selection of Arab dishes as well as Chinese dishes. This restaurant became sort of a 'staple' restaurant for us while we were there. We tried both their Arab and Chinese cooking, and they were good! Expect prices of meals and side dishes to be between CNY20 to CNY 50 per plate, depending on what you're ordering. But all the prices are reasonable and not very expensive.
Note: food photos are from different visits to Dong Yi Shun, not all at once! :)
p/s: All the food we tried were delicious. But I must say, the fried shrimps were just scrumptious!!!