Restaurant A Forja
R. Ferreiros 15/7, Lagos 8600-727, Portugal
282768588
I am sure there will be no problem taking a baby there but be warned it is a bit claustrophobic when full.
Another cheap and cheerful is the Adega da Marina on the Avenida.
I'm tending to go there these days when I get back to Lagos late in the evening.
Had a meal there last night - Costeletas do Porco, Salad, Bread, Butter, 1/4l of wine and a Bica Cheia for € 10.25
Another real cheap and cheerful I often go to is:
Churrasqueira Frangos S. João
Urb. Marina Sol Lote 17 - loja A
8600-707 Lagos
Telefone: 282 767 128
To get there, wander down the Avenida in the direction of Mcdonalds, until you come to the Seagulls' roundabout. (a/k/a the Caravela Roundabout).
Turn left into Rua Vasco da Gama, at the Posto do Turismo, take the first right and then right again. The Restaurant is on the left.
I have been known, recently, to have a full workman's lunch there for € 7.50.
Supper is equally reasonable.
The installations are clean, if somewhat basic. There is no menu...they tell you what's on the menu that day. They do speak some English. Great for kids. The locals who hang out there are a good bunch.
If it's any recommendation the local police and ambulance service often stop in for take-outs.
