Here are four (2 non-fiction, 2 fiction) must read books recommended by my peers (and for which I hope to eventually read when I get around to it someday).
Fataliasm and Development – Nepal’s Struggle for Modernization
by Dor Bahadur Bista
“- an oldie but a goodie. Supposedly explains a lot of things about the Nepali culture”.
by Manjushree Thapa
Arresting God in Kathmandu
by Samrat Upadhyay
by Narayan Wagle
“English translation of the best-selling Nepali noval”