Timorese food is simple and honest — rice, corn, cassava, fish, pork, and vegetables, cooked with coconut milk, tamarind, and chilli. The cuisine reflects the country's layers: Austronesian staples, Portuguese touches (you'll find pastéis de nata and grilled meats), and the Indonesian influence of 24 years of occupation (sambal, tempeh, and nasi goreng all appear on menus).
Ikan sabuko — grilled mackerel served with rice and sambal — is a street food staple in Dili. Freshness is generally excellent given the proximity to the sea. Fish markets along the Dili waterfront sell the morning's catch directly; nearby warungs (small food stalls) will cook it for you.
Batar da'an (corn and pumpkin cooked together with coconut milk) is a traditional Timorese dish found in local restaurants and villages. Feijoada, a legacy of Portuguese cooking, turns up in various forms — a bean and meat stew that bears some resemblance to its Brazilian or Portuguese cousins.
Dili has a reasonable restaurant scene by the standards of a small capital. There are Indonesian warungs, Portuguese-influenced restaurants, a handful of Australian-style cafes, and Chinese restaurants. The east end of the waterfront (near the Areia Branca beach area) has clusters of affordable local eating spots that fill up in the evenings.
Coffee is the thing Timor-Leste does better than almost anything. The country has been growing Arabica since the Portuguese introduced it in the 1800s, and the beans — organic, shade-grown at altitude — are excellent. Order a bica (short black, Portuguese style) at any cafe and you'll get something worth drinking. The Timor hybrid variety, unique to this island, has notes of chocolate and earth. Several local brands and cooperatives (Café Brisa Serena, Cooperative Café Timor) sell beans and ground coffee; they make the best possible souvenir.
Outside Dili and larger towns, food options are limited to whatever the local warungs are cooking that day — usually rice, vegetables, and fish or chicken. Carry snacks if doing long drives or hikes.