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Il Palio Restaurant Review: Once the most formal dining venue in Chapel Hill, renovated Il Palio caters to a more youthful patronage. The revamped interior boasts a clean modern design with well-spaced tables, art-embellished walls, low canister lighting and limited fuss and fancy. The addition to chef Ted Diggs’ kitchen, a wood-fired grill, has resulted in a simpler but no less tasty Northern Italian menu. Wood-grilled steaks, chops and whole fish dominate the menu, though the fresh pasta, made by hand, is still first-rate. After eating wood-grilled crostini with assorted toppings, try such temptations as duck egg carbonara with house-made pancetta or hand-cut taglierini with truffle-porcini butter and, in season, shavings of black truffle. Then order the grilled lamb chops if you dare. If you can squeeze in dessert, sorbets and gelati are available as well as the house specialty, lemon ricotta bombolini, a pastry you may be wise to share. A fine array of Italian wines, with unusual depth in several categories, is augmented by interesting choices from Austria, California, France and Australia. Even Madeira is available in some depth. On a warm evening, an attractive patio adjoining the bar is a lovely spot to sip a Negroni and nosh on the addictive Parmesan truffle fried potatoes.