What are my options? I am thinking between 10 and 20 dollars per meal, preferably around the newtown area. I don't like the fast-food curry places, would be willing to spend more for something decent.
You should try Maya-Da-Dhaba on Cleveland Street in Surry Hills (there's also Maya sweets across the road and a load of other vege-friendly, reasonably priced curry places around there). The saag-paneer is particularly good!
Nepalese Kitchen on Crown Street also does lovely Thali plates (you can pick any curry to go with it).
The other obvious option is Govinda's - that is totally vegetarian (but you can also catch a movie there before/after dinner).
Bon appetit! about 10 years ago