We (my husband and I, and our 2,5-year-old daughter) stumbled upon this little place completely by chance. Having just walked along the tourist-trappy Rua das Portas de Santa Antao, we found this place refreshingly simple and straightforward (and clean), and decided to give it a try. Their sign says Restaurante Caravela, but it is very little - we barely managed to find a spot for our daughter's stroller. We were served bread and round cheese, and got a big bottle of water. After having nodded to a big leg of Serrano ham resting on the cook's outstretched arm, we were served a medium plate of the thickest slices of Serrano we had seen till then. We were hungry and tired so we didn't spend much time deciding and chose grilled bacalhao for both of us (and the menu on the desk was all in Portuguese anyway). The fish was delicious - salty, in olive oil and garlic, with tasty boiled potatoes and a big plate of fresh salad. The portions were big, so we didn't have to order anything special for our daughter. For dessert we had dellllicious Doce do Casa. With 2 coffees, all of this cost just 36 euros and it was an excellent meal, great value for money. The waiter was nice and efficient. We would absolutely recommend this place.