Caz Bar is the long-running Australian-run cafe-bar that sits over the water at the western end of Avenida de Portugal. You walk through a small courtyard and out onto a wooden deck propped on stilts above the beach. By day it serves big breakfasts, fish-and-chips, and burgers; by night the deck fills with Dili's expat crowd and beer is cold.
The food is unfussy and reliably good — order the grilled local fish of the day or the chilli barramundi. Prices are mid-range by Dili standards (mains USD 10–18). The deck catches every breeze, which matters when the city is steamy.