I've only been a couple of times but I can highly recommend a restaurant:
Fernando's down by Hac Sa beach. It's out of the way of the casinos, in a quiet corner of Macu. (although Macau is small so not too far away!)
It does traditional Portuguese dishes and fantastic Chicken dishes.
Taxi drivers know where it is, you can just say 'Fernando's' and they'll know what you mean.
It's cheap and fairly basic but has a great atmosphere.
Tip - You can walk through to the back where they have the court yard and dining room as opposed to sitting in the front.

A couple of reviews:
http://gohongkong.about.com/od/daytrips/gr/fernandosmacau.htm
http://www.dininginthailand.com/fernando%27s-macau.asp

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