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THIS RESTAURANT IS CLOSED Blue Grotto Restaurant Review: Italian restaurants cover Federal Hill like grated Parmesan on red sauce, but standout Blue Grotto has its act down pat without being dull. Around since 1980, the restaurant delivers the old standbys like fried calamari with hot peppers and olive oil, veal scaloppine in a pink sherried cream sauce with lobster, and homemade gnocchi baked with crushed tomatoes, fresh basil and pecorino romano with finesse. Seasonal specials, though, keep the menu fresh. House-made desserts are concocted daily and the tiramisu is always a favorite. There's an extensive wine list and for those who can't decide, eight different wine flights allow for sampling. A $15 lunch deal --- a starter, entrée and dessert --- hits the sweet spot for budget-conscious diners. Sunday brunch is served buffet-style.