This is a book written about Nepal and a Nepali girl, but it is written by a Westerner.
Sold by Patricia McCormick
http://www.amazon.com/Sold-Patricia-Mccormick/dp/0786851724/ref=sr_1_1?s=books&ie=UTF8&qid=1303443130&sr=1-1

It describes how a poor Nepali girl from the villages ends up in the red light district of India and her life there. Very real and very sad.

I'm not sure whether I was biased knowing that it was written by a Westerner, but when I read the book, it didn't feel authentically Nepali. At least the beginning of the book, it felt very much like a Westerner trying to tell the story. I just felt like a Nepali writing would not describe things in that way. But who knows, perhaps I was biased, knowing it was a westerner.
Anyway, the writer apparantly wrote the book after extensive interviews with Anuradha Koirala and Maiti ghar Nepal.
 
After I got over my initial hang up that a Westerner was trying to capture Nepali culture, I found that I could enjoy this book. the book is very tightly edited and extremely well written. It is written at an 8th grade level. It reads almost like poetry more than prose. It was a pleasure reading this book from beginning to end. I wanted to read it a second time but didn't get the time.

Movies tend to get me more emotional than books. But this book, by the time I read the the last line, had me choked with emotion. Excellent read and highly recommended.

Daniyal Mueenuddin: In other rooms, other wonders.
http://www.amazon.com/Other-Rooms-Wonders/dp/0393068005
It is one of the best pieces of fiction that I have read of the South Asian genre. Though not a novel, the stories are interconnected.
I enjoyed the book so much, I read it twice. On the second reading I got a lot more out of it than the first. The stories are based in Pakistan though the characters have their feet in both the East and the West. The stories are amazingly crafted. I think that this book unapologetically captures South Asian culture--including Nepal's. I found it very insightful.

Would love to see more Nepali writers who produce work of this quality.