Goa drinks more freely than most Indian states — alcohol is cheap, taxed lightly, and consumed openly — and Panaji's drinking scene is among the most relaxed in the country. The classic place to drink is São Tomé Square, where Joseph Bar (Goa's oldest tavern) and a handful of newer competitors keep a small crowd standing on the cobbles outside well into the night. Feni, the local cashew or coconut spirit, is the default short; Kings beer or a Sula white is the long drink.
For coffee, the small Café Bhonsle near the bus stand has been a Panaji institution since 1947 — strong filter coffee, sweet sticky buns, and a working-class breakfast crowd. Black Sheep Bistro and several Fontainhas places now serve flat whites and bossa nova for a different crowd.