We stayed in Havana in mid February 2008 for 4 nights with my wife. We discovered Lluvia del oro first night and went there for 3 nights. We love Cuban music and in Lluvia del oro, Son Tradicional, a local Cuban group was playing.They were great, the show was really nice. The place is right on Obispo street, very easy to spot.
We ate seafood there, the dishes were nice. You can find good Cuban food and all dirnks there. Nice palce especially do not miss Son Tradicional.
This restaurant/bar has a great selection of inexpensive meals. There is live music during lunchtime and at night. This place is open 24 hours a day. The drinks here are very reasonably priced.
Favorite Dish: I loved the fried chicken with the rice and black beans. For only $4.00 U.S. it was a complete meal and very tasty. Wash that down with a $1.00 beer and you've got it all.
Another of my favorite restaurantes in Havana is La Lluvia de Oro. It has cheap pizza and fried chicken meals for about $2 USD. This place allows both Cuban and tourist clientelle so it has quite a unique and friendly (sometimes overly friendly!) atmosphere.
It also has local bands playing on a regular basis but they will come around and ask you for a 'tip' and then suggest that you give them $1. I suggest you give them whatever YOU feel like and NOT feel guilty about it. It also has one of the few public toilets in the city but YES the attendant there will ask you for a tip, too!
Favorite Dish: The fried chicken for $1.50 and the ice cream (when they have it!)
Thats a ice place to hang out, have some drinks and grab some snacks..live salsa music, some locals, plenty of cigarettes and cigars - nice