There's also a nice portuguese local restaurant (cant remember the name) near the marina (near the taxi stand)

Superb baby clams in a garlic butter sauce.

In Lagos we ate a few times at the restaurant called (if I can remember)The Don Sebastien...it has a lovely atmosphere, is on the main drag of restaurants, but the food is only average and quite expensive. There is a pizza/pasta place in the main square which is always busy and child friendly. In Praia de Luz I would recommend the Chinese on the hill out of town in the newish apartment complex.... I wouldn't go to the Fort...it's living on it's reputation only.... the food is poor to say the least. Opposite the Fort is a line of 4 restaurants and I would highly recommend the Atlantico.... you must book. The food is fab, excellent fish and pepper steak.... I've been to Praia 3 times and am off again in 2 weeks, this is the restaurant I will be eating in the most.