Opal is a great spot, with a menu that is appealing on all levels.
Palapa rocks for breakfast (only time we've been), feels like you're in a small Mexican beach town.
Not far from Palapa is Kampai, a Japanese restaurant opened by Sato, the former owner of Azuma, one of SB's oldest sushi restaurants. Very casual, neighborhood vibe, in El Mercado plaza, 4141 State.
Paradise Cafe is always a staple for us - good food, great wine list, very SB.
Brophy Bros. for seafood at the harbor is another fave - be prepared to wait but it is worth it.
FisHouse on Cabrillo has an amazing Happy Hour 4-7:00 M-F, and the food and drink deals are unbeatable. Great fish tacos. Really great (and I'm pretty picky when it comes to them). Skip the fish & chips, tho.
Brewhouse on Montecito St. is a real casual favorite of ours, for the great food, great beers, and great Happy Hour 7 days a week 4-6:00. Also incredibly dog-friendly on the patio.
I can reccomend Jade, which is located on the north end of State sStreet. Nice room, always nice waitstaff, great local wines (and big glasses!) and great food. Our favorites are the crab tacos, kalua pork and any fish dish. The Spinach salad is always ordered!!
Another local favorite to us is The Chase- I go just for the tiny white lights that are in every nook and crany. The food is a Bplus, great cocktails and fun location on State Street.
Last but not least, we like Palapa- at the base of the 154 and where State turns into Hollister. YUM is all I need to say. The platter for 2/4/6 etc. fit the bill for us.