Aragosta is a well-regarded taverna in Plaka serving straightforwardly excellent traditional Greek food with the kind of view that makes a meal memorable regardless of what ends up on the table. The terrace looks westward over the island's coastline and the bay below, and in the evening the light over the sea is about as good as dining backdrop gets in the Cyclades. The menu stays close to tradition: fresh fish priced by the kilo, grilled octopus, calamari, and the local pitarakia cheese pies that should be ordered as a matter of course.
The service is unhurried in the Greek village manner, which is either a pleasure or a frustration depending on your mood and your plans for the evening. Booking ahead in July and August is advisable — the terrace tables with the best views are the first to go. The prices are fair for the setting, considerably more reasonable than the harbour front restaurants in Adamas for equivalent or better quality. Plaka in the evening, with a meal at a terrace taverna and a walk up to the kastro afterwards, is the standard Milos evening that the island consistently delivers on.