I can confirm this place is open since I was just there at the end of June 2013.
I walked to this place from my hotel, and it was not that hard to find. If you go to the right too much, you'll be in a row of little shops all inside the temple complex. Instead of turning right, just go straight and then you'll see the place to your right.
I ordered two dishes --- a hot&sour soup and a special radish dish --- along with rice. I figured that would be the right amount for one person. I ordered some of their standard tea to drink. The soup came in a giant bowl --- there was enough there for 4 people easy. I had skipped breakfast, and the food was very tasty, so I managed to stuff myself and eat almost everything. I couldn't really finish the tea however because I was pretty full of liquid trying to take in all that soup.
This has got to be the tastiest food I've had in Xi'an. And in terms of vegetarian Chinese food, it's right up there with the best I've had in Beijing, Shanghai, or Hong Kong. It is superior to the best I've had in San Francisco, Berkeley, or New York City.
I'd recommend this place in a heartbeat.Pros: Very tasty food, Quite inexpensive
Cons: No English spoken, No napkins