Sanity damage and Lesser Restoration, Rules Query

[ChrisAsmadi]

Lesser restoration dispels any magical effects reducing one of the subject’s ability scores or cures 1d4 points of temporary ability damage to one of the subject’s ability scores. It also eliminates any fatigue suffered by the character, and improves an exhausted condition to fatigued. It does not restore permanent ability drain.

A single casting of lesser restoration reduces sanity damage by 1d2 points up to once per day;

Lesser restoration has no effect on greater madnesses, but reduces the current DC of one lesser madness afflicting the target by 2, up to once per day.

Are the additional effects added by the Sanity rules part of the "or" part of Lesser Restoration (as additional options), or part of the "it also" section, in which case they take effect as well as the ability damage healing or effect removal?

Also, do both effects take place, or only one?

[JonasBeckman]

It isn't really obvious.

In our CoC inspired campaign, we picked whether we got the physical or the mental side of the spell. The mental side gave both effects. This made sense to us, as the increase in sanity would probably have a positive effect on the madness.

-JBeckman