Take a look here.
Depending where your hotel is, the taxi fare to the Old Town will be about 5 - 8 euros. The Old Town is near the terminus for the cable car and the bus station. I would suggest you go into the restaurant at 8pm latest as they are small and can get very popular.
http://www.madeira-web.com/PagesUK/eating-uk.html

Dan_Cheng

ManyThanks for your help.

AJ

If you like steak try Sol d'ajuda just up the side of the Monumental lido hotel. The 'steak on the stone' is wonderful!!

The 'steak on the stone'

This is called estepada as opposed to espada which is scabbard fish. If you go to Madeira Shopping, which is a new Shopping Arcade in the Hotel Zone, there is a great Brasilian restaurant there. Try it for the fixed menu; eat as much as you can of fresh meat for a fixed price. 10 euros.

I will have to try that next time we visit. I love the scabbard fish as well.