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If you're looking for good quality food at prices which are very reasonable then AVIZ is the place for you. It's frequented by students and locals but the tourists by and large don't seem to have stumbled on it. The place is a combination of bar, cafe and restaurant, extremely friendly and you can get anything from a toasted sandwich to a full meal. The food is simple, good quality and a lot of it is traditional. Try the fillets of sea bass and marvel at the quality and the price (approx 6 euros). Wash it down with a bottle of the best priced wine in town. Don't bother with the place if you're looking for smart - this isn't the place - it has it's own atmosphere.
To get there start off at the Av. dos Aliados by the Bank of Portugal. Walk up Rua da Fabrica by the corner of the Bank. Cross Rua do Almada and carry on up Rua da Fabrica. The next turning on the right is Rua de Aviz and AVIZ is along there on the left.
Another great option is Restaurante Zé Bota, close to the University of Porto rectory and Santo António Hospital. (travessa do carmo 16/20). Traditional Portuguese food, friendly attentive staff. The place is not smart but it has "personality" and authenticity.
If you are near Santa Maria Hospital, don't miss the Santa Maria Cafeteria on Ria de Sao Bras. Inexpensive, where the locals eat. Definitely try the famous Porto sandwich, the Francesinha.