You will find a smattering of posts over the years by searching this board; let me just add a detail or two.
Panini comes highly recommended for its breakfast pastries, but it makes a *killer* pizza at lunchtime. Get it early, around 11:30 or so, because they take it out of the oven and serve it at whatever temperature it cools to. But their pizza at room temp is better than most others piping hot.
Someone had mentioned the seafood shack just south of downtown across the river. Don't do it. Dull, unappealing fried fish.
Oceanna, the local food coop, is worth a stop to check out local products. You can save some money here (to support your splurge habit at dinner).
Have a nice time. I hope you're not socked in too much....
There is a great bakery in Nye Beach, along with a terrific little wine shop -- it says wine and art I think. She has a great palate and good bottles you may not find elsewhere. The bakery has pizza slices and good muffins and breads. On Saturday there is a Farmer's Market where sourdough bread is sold and other items. You can see the signs off 101.
Had a very nice dinner at the Side Door Cafe in Gleneden a year or two ago. They also do lunch.
Haven't been to Newport in a while, but used to really like Canyon Way for lunch and also the Chowder Bowl (which is at Nye Beach) for chowder and the small salad bar.
Had an unbelievably awful meal at Oceanus in Depot Bay...so bad we refer to it as the "Ocean's Anus." I recommend avoiding it. ;o)