One of the few affordable restaurants where they serve beer, Coconut Lagoon, is near the Music Academy. There are good bars where they serve food but at the Lagoon you can get a wide variety of Goan and Kerala food plus the beer. You may also smoke at the restaurant, one of the reasons why my friends and I adore this place.

Lagoon is near the Music Academy signal inside a compound in which you can find an Andhra restaurant (where meals are great), Snofeild (as the name suggests for dessert), Palki and an open-air restaurant called Romali. And because of all this, the formidable bunch of restaurants attracts a large crowd during most times.
The main attraction at Lagoon is the fish. I have tried the Goan variety but most Malayalee dishes are tasty and well prepared. They are spicy and oily, particularly the fried dishes. So don’t freak out here if you a health food junkie. The Kappa is quite good too.
Most of waiters are Malayalee, so you can hit if off if you are one as well. The ambience is good without being great. But they do play some silly music at times. But that goes with the territory, I guess.
Beer is around Rs 110 and food for two would cost Rs 250.