Funchal has an abundance of good, if not necessarily cheap, eating places. Most places serve traditional Madeiran and Portuguese food, which is well-prepared and well-tasting, but not terribly exciting. One of the most typical dishes and served almost everywhere, is espada com banana, scabbard fish with banana. It is usually served with fresh salad and potatoes. A bit more expensive, bacalhau (dried, salted codfish) is served in many restaurants. One of the more common, and best, varieties is "bacalhau com natas", codfish in cream sauce.
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Funchal Travel Guide from Wikitravel. Many thanks to all Wikitravel contributors. Text is available under Creative Commons Attribution-ShareAlike 3.0, images are available under various licenses, see each image for details.