I found the following sign when I paid a visit...
I've actually never been here, or know anyone who has ever been here... So I went to their Web site for more information:
Mug Lounge is a cozy and intimate East Village lounge. There are tables to discuss a business deal, seats to drink at the bar, and corners to hide away in with someone you love.
The lounge was an art gallery when Keith Haring and Andy Warhol roamed the East Village. It was a beauty salon when fashion photographer David LaChapelle's studio was across the street.
Now it's Mug Lounge where you can have a drink, have a conversation and soak up the casually elegant East Village ambiance. You never know who you'll meet when you go to Mug Lounge.