An electrosurgical system and method for ablating, resecting, or cutting body structures, with minimal or no damage to tissue adjacent to the treatment site. The system includes an electrosurgical probe having a shaft with a shaft distal end bifurcated to provide first and second arms. First and second electrode supports are disposed on the first and second arms, respectively. At least one active electrode, in the form of a loop or partial loop, is arranged between the first and second electrode supports. A return electrode, also in the form of a loop or partial loop, is arranged between the first and second electrode supports distal to the active electrode. The active and return electrodes are configured to promote substantially high electric field intensities and associated high current densities between the active portion and the target site when a high frequency voltage is applied to the electrodes. These high current densities are sufficient to break down the tissue by processes including molecular dissociation of tissue components. In one embodiment, the high frequency voltage imparts energy to the target site to effect the vaporization and volumetric removal of a layer of tissue without causing substantial tissue damage beyond the layer of tissue ablated. In another embodiment, a fragment of target tissue is removed, with minimal or no damage to surrounding tissue, by a process including the molecular dissociation of tissue components, and the tissue fragment is retrieved for biopsy.