Bar and cafe; amazing location, good food and drink (reasonably priced considering its location) and the most breathtaking views from the terrace. Great flathead and chips, risotto, wine, cocktails etc. Also, if you happen to be around on a Sunday afternoon they also have live jazz.
Terrace below Opera House, nearest station Circular Quay.
www.operabar.com.au
Google map: tinyurl.com/pgmxfy
But beware - on a Friday evening, this must be the busiest bar in the city, with barely enough staff to keep the queues below mob level.