Café Bacacay: located very close to Plaza de la Independencia, right across the Teatro Solis and open all day for a coffee or a bite to eat, this café/restaurant offers a variety of very tasteful dishes going from traditional to more innovative cuisine. Service was excellent.
La Pasiva: This restaurant chain is found all over the city, and specializes in beer, hot dogs, and chivitos.
Le Corte: Classic restaurant (not fast-food) in the Ciudad Vieja, with lovely decorations and great food.
Mercado del Puerto: This touristy area houses a dozen or so restaurants. Most offer grilled meat, and you can find good paella, as well. It is usually quite busy - just find an open seat to be served.
Montecristo: Located in Pocitos, this restaurant offers innovative dishes and is housed in a castle-like building that used to be the house of an alchemist.
Sidewalk cafes: Cafes abound in the city center along the pedestrian streets heading towards the Ciudad Vieja.
Estancia Del Puerto: Featured on Anthony Bourdain's 'No Reservations'. It's an All You Can Eat meat bar.
Cru: Considered Montevideo's finest restaurant, with a good sampling of Uruguayan New Cuisine.
Don Pepperone: With several locations around the city, a good bet for anyone seeking a taste of an American-style chain. This Italian-American themed eatery offers a wide variety of pizza as well as other pasta dishes.