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Caffè Antico Milazzo
The Caffè Antico is a nice place in Milazzo on top of the hill, an atmospheric mix of cafe, bar and restaurant, featuring local music bands in the evening. They have a wonderful outdoor area on a square. The dishes served are of excellent quality (the fish is superfresh) and with refined ingredients, but it is not the cheapest place to go.
The food is really good, but choose for yourself, don't let the owner do this for you, or you could experience an unpleasant surprise. It is best to go in the evening when there is live music, although parking could be a problem.
But the Caffè Antico is a very scenic place to go if you are not travelling on budget.