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Buza cafe is a a great place to hang our while in Dubrovnik! It is very difficult to explain how to get there without getting lost. It is on the outer side of the Old Town walls facing Italy. The best way to get there is to go behind the Church of St. Blaise and to keep walking past Hemingway bar, past the Cathedral, then pick a little side street and walk towards the wall facing the Adriatic sea and Italy. When you hit the wall keep walking along it until you reach a door. At this point, you can go left or right, and either way will take you to one of the two Buza bars- slightly different spots, no food, great views either way.
There is a sign saying "Cold Drinks," and that is where you want to go. Go during the day so you see where it is, and then go at night. There are usually a lot of people, including lots of tourists, backpackers, and locals both day and night. You can also go swimming here (no real beach to speak of though). Walking along the Old Town walls along the sea you will spot this cafe. Pictures and more info can be found in the user reviews.