The government is actually rather hypocritical.
Some hotels will not allow 'overnight guests'.
There are hundreds and hundreds of Amsterdam restaurants.
Another place to see katoeys is Simon Cabaret at the south end of Patong on the road to Karon.
Girls speak fluent English and you can make your pick with Chinese, Malays, or Indian or mix of those.
Mediterranean Cuisine 1.
I can vouch for these numbers.