We ate at Bonjardim that Rick recommends on "eating lane." The piri piri chicken was excellent and it was fast. Overall a great experience. The soft cheese they gave us up front was delightful.
We also ate at Dois Arcos Restaurante on Rua Dos Douradores very close to Restaurante Gandhi Palace (recommended in rick's book). It was less touristy and was a great experience. We had some seafood/fish soup that was excellent along with some tapas, great wine and whatever else they brought us to sample. The staff was wonderful.
We tried the Ginjinha with cherries. At first it was a little strong but we seemed to keep going back for more each night.