RE: University Hill Area - Seattle
The University District? Cedars is okay, but Agua Verde would be my choice. Down by the water, very tasty.
Fran's is a serious weakness of mine. Salted caramels and what is absolutely the definitive lemon ice cream; if it's not in the case, ask, because they usually have it in the back. It is beyond "good", it is beyond "great" - I utterly lack a word to describe their ice creams, and their lemon is the best of all.
Whole Foods is where I used to grocery shop. The produce is the best in Seattle (other than Sunday small-producer day at the Pike Place Market). The fish department is excellent as well. The salad bar is Pretty Good, and the deli takeaway options are tasty.