Climb the stairs up from Praia da Fontina to this hidden beach shack just west of the Torre Praia hotel for some of the freshest seafood and friendliest service on the island. Sit outside in the rustic and charming deck area with your feet in the sand or dine in the surprisingly modern indoor space and watch the staff grilled your food in the open kitchen. Come hungry: Pe Na Agua specializes in huge pots of seafood specialties for two that could feed a family. Start with the garlicky grilled limpets, then move on to the wonderful esparguete mariscos (seafood spaghetti) or arroz de peixe e gambas (fish and shrimp rice), and don't forget to finish with a soothing glass of Madeira.
Sitio das Pedras Pretas, Vila Baleira, 9400, Portugal