Roughly what you'll find on most terraces is the same UK tourist-food: sausages, bacon & eggs, hamburgers, steak & fries, etc... Yet, there are a few outstanding terraces that feature excellent specialty dishes & chefs. Plaza Cavana's Casa Luque terrace is one of these, featuring delightful tapas & dishes (strongly recommend the oxtail) to enjoy both on it's outside plaza terrace or inside its cosey private terrace overlooking Nerja's mediterranean see. Another set of lovely terraces are the ones located on the Balcon de Europa and just behind it, but be carefull not to pick the hamburgers ones (unless that's what you are looking for =)
Nerja's Parador de Turismo chef (Michelin awarded) and Udo Heimer (two forks by the Michelin Guide), Casa Luque, Carlos Paco & Mari, El Sevillano, Pepe Rico, The Old Cellar, Meson Patanegra, Puerta del Mar and La Marea (both seafood) are some of the finest.
For popular fish & seafood in the town-centre go to El Pulguilla (Almirante Ferrandiz), La Marina (Plaza La Marina), or Los Pescaitos (C/ Chaparril, best fish & seafood tapas) On the beach (Burriana) each chiringuito has it's specialty: Fritura de pescado (assorted fried fish), Espetos de Sardina (outdoor barbecue grilled sardines), Calamaritos (Small Squids), etc...