I first found out about this video from Jay Smooth's twitter and fell in love with the smooth sound contrasted with the raw, honest video.
According to her website, Mishal Moore is based in South Florida (UPDATE: as per Mishal's comment, she's living in the tri-state area in the Northeast now, that's NY-NJ-CT for anyone who doesn't know). This indie singer has butter-smooth vocals that remind me of something between Erykah Badu and Ella Fitzgerald.
She also makes a ton of videos and posts them on YouTube, many of them of her singing beautiful covers.
The web is a great place to find talent early on. Check her out on MySpace, too.