Paulinho Pescador is one of the oldest restaurants in Arraial and the place locals send you when you ask where to eat fish. The room is plain — wooden tables, a tiled floor, a small bar — and the menu is short: grilled fish of the day, moqueca (a Bahian fish stew with coconut milk and palm oil), prawns in garlic, and a handful of side dishes.
Portions are large enough for two and prices are kept down by a steady local trade. The grilled snapper with rice, beans, and pirão — fish broth thickened with manioc flour — is the safest first order. It's on the Rua das Pedras, a short walk uphill from the main square.