An isolated output electrosurgical generator suitable for generating cutting and coagulation electrosurgical currents is described. The electrosurgical generator using a single power stage generates three distinct and independent currents--a coagulation current for hemostasis or tissue destruction; a pure cutting current for cutting with a minimum amount of hemostasis; and a blended cutting current with a moderate amount of hemostasis. The electrosurgical generator includes a solid state power stage driven by two discrete frequencies that provide substantially differing cutting and coagulation characteristics. The electrosurgical generator also includes a solid state control circuit that controls the operation of the power stage. More specifically, the control circuit controls whether the power stage generates a current near the resonant frequency of the LC circuit so that a coagulation current or a blended cutting current is generated or whether the power stage generates a current at another frequency whereby a pure cutting current is generated. The output from the power stage is connected through an output circuit to suitable electrosurgical instrument terminals. An indicator circuit is used to provide audio and visual indication of activation of the electrosurgical generator. In addition, the electrosurgical generator provides electrical isolation on all output connections to prevent patient burns caused by alternate return current paths.