Actually, the 'l' in the name is a Polish l-with-dash, pronounced like a 'w'. It's Polish for "under the mistletoe", which is hanging from the ceiling. In the summer, there's also place to sit outside, next to the separate toilet house, to escape the smokey room. Inside, you usually sit on a log of wood, great to break your back over a wodka or beer, and there's only candles to light the place.
It's in one of the courts off Ul. Florianska 20, the busy shopping street in the center of Krakow.