By DAVID LANDSEL

THEY did the hula in the Hawaiian Room at the Lexington Hotel in the '40s.

Their children danced at Times Square's Hawaii-Kai all the way into the '80s, and lunched at Trader Vic's in the basement of the Plaza Hotel until 1993.

With the recent boom in Polynesian-theme party spots, it's clear that New York's Tiki gods hadn't died - they were just taking a nap.

How else to explain the return of the crowds to the formerly lagging Barmacy, which reopened this week as Otto's Shrunken Head Tiki Bar & Lounge?

Co-owner Steve Pang is going for a "rock 'n' roll tiki" theme with this conversion of a once immensely popular East Village bar.

Tiki touches abound, but liberty is taken with leopard-print bar stools and dark, rock club-esque walls.

It works because of strong, satisfying concoctions like the Zombie (served in a really big porcelain tiki mug) and the deep-dish Volcano Blast, bluer than the waters of the South Pacific, and served ablaze.

Be there this Saturday for a grand-opening party that kicks off at 7 p.m., with burlesque by Fancy Chance as well as live music.