If anybody is still looking to book a Christmas day lunch....and if the Sunday lunch we just had is anything to go by....we can recommend the new Monte Mar restaurant in Monte Carvoeiro. They are doing a traditional turkey lunch with roast chestnuts and port wine sauce etc. for Euro 30 per person. This includes a choice of starter and Christmas deserts. There's also a fish main course option available. Book at 912 622 555 (they also have a new years eve menu)

We went to the Christmas Eve dinner at Monte Santo. Excellent food and value. Three courses and cover for 32 euros. After the excellent cover we were asked if we wanted more bread and they brought us a complete new platter of bread, ham etc. After dessert we were told to help ourselves to the complimentary cake table, which had lots of traditional portuguese cake and pastries. We were then given a complimentary cup of homemade gluwein, followed by another, and then another. At this point we thought we had best leave before we could not stand up. Only extra was the bottles of wine and water.
If we are around next year would definitely go back.