The Osborne lights will be on New York street for the first time this year. Last year they didn't have them and before them they were on the backlot tour neighborhood set. That set is now demolished making room for the stunt show.
There are not any restaurants that will allow you to see the lights while you eat. The closest restaurant is probably the Sci-Fi Dine Inn. Some people give this restaurant poor reviews, but we have always liked the food there.
None of the restaurants are very far from the lights (MGM just isn't that big of a park) and none of the restaurants are on the outside edges of the park.
We we are doing is going to MGM one evening, the day before it has the extra magic hour. We are going to do the Fantasmic deal eating at the Brown Derby. Then we'll ride a couple rides, see the Osborne lights, and finish the day with Fantasmic.