After much experimentation giving interviews for server side positions, I've come to favor questions that involve routine real world problems that can be handled in increasingly sophisticated ways.
One example I use is getting the candidate to write crud, list, and search controller actions for a simple category data structure. Given a basic category data model (e.g. Name, Parent), the candidate starts with the crud actions.
Crud actions aren't meant to be difficult to solve and serve as a basic screener to verify the candidate has working knowledge of the basics. The only edge case I look for the candidate to ask about is if orphaning child nodes is allowed (I.e updating parent node, deleting a node with children)
List action(s) start getting more interesting since recursion comes into play. A basic implementation of an action that can load the tree given an arbitrary category as a starting point is expected. If the candidate has some prior experience, a discussion of what performance concerns they may have with loading the category tree is a follow up question. The tree loading algorithm is then expected to be revised to handle an optional max depth parameter. An edge case I look to be considered is how to signify in the action response that a category has one or more child nodes that weren't loaded due to a depth restriction.
The search action implementation has a degree of difficulty scaled to the candidates experience level. All candidates have to write an action that returns a collection of categories matching a search string. Those with previous experience are asked about a paging solution. Senior level candidates are asked to return matching categories in a format that indicates all ancestors ( for instance: "Category 1 -> Category 1.1 -> Category 1.1.1" result for search string "1.1.1")
For an added degree of difficulty, candidates can be asked to recommend data model tweaks and algorithms supporting tree versioning requirements necessary to allow for loading the category tree's state at a given point in time.
The candidate's performance to this exercise seems to give some insight into their level of experience and ability to implement algorithms from a common real world example without having to ask much trivia or logic problems.