A visit to the original Doyle's restaurant at Watson's Bay is a must. The Doyle's family has been serving the freshest seafood there for over 100 years. Take a taxi, or even better a ferry, in the evening to sit on the verandah eating fish and chips and watching the most spectacular sunset disappear behind the towers in the city. It's a bit pricey for a backpacker, but well worth a trip out of the city.
11 Marine Parade, Watsons Bay