I agree with Tim, the best restaurant around is Avra at Kalamaki Beach (on the right side, somewhat away of the tavernas). Always ask the chef about the menu of the day, he always has surprises ! Second best restaurant is between Kalamaki and Matala, it's called Panorama café (or something like that) and you have a stunning view on Comos and Kalamaki beach, in the evening the sunset is splendid !
I stayed at Kiknos Hotel and that's a really good place to stay, I saw on their website they opened a café too, perhaps you should try it too.
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