3 Best Restaurants in Madeira, Portugal

This excellent coffee shop has a few branches across Funchal, but the best has to be the one on Rua da Conceição, where chairs spill out onto an unnamed square that's cobbled in black and white stripes. Small tables under shady parasols provide the perfect rest stop to grab a bica (espresso) and a pastel de nata (custard tart); step inside and you'll see row upon row of neatly presented cakes and tarts laid out in the chilled counters like gems in a jewelry box.

From the sandy shores of Praia da Fontinha, climb the stairs to reach this somewhat hidden spot. Sit outside on the rustic deck shaded by palm trees or dine in the surprisingly modern indoor space and watch the staff grill your food in the open kitchen—and come hungry: Pé na Água specializes in huge pots of seafood big enough to feed a whole family.

This is among a handful of atmospheric restaurants in Machico, set in the former market not far from sandy Praia de Machico. You can sit at the leafy outside terrace that has its own fountain while you enjoy simple dishes or just sip coffee.