logicbob - meant to reply before. We eat here usually once on each visit (normally 4 times a year) and find the food good and the house wine also good. Prices very reasonable. Please give it a try; I am sure you will not be disappointed.
Only just seen this thread, as just got back from CVO last night.
Would agree entirely with Davek's opinion - very reasonable prices and good food. We usually eat there about 4 times a year, but didn't go there on this visit.
On the road from lagoa to CVO, turn left at the new traffic lights a few hundred metres past Intermarche towards Poco Partida.
The road then goes left on a tight bend - Nuno's is on the right about half a mile past the bend.
Had a lovely meal at Nuno's last week, food great, good service (if you don't mind the owners dry sense of humour). Large portions and very reasonably priced. Was even given a guided tour of the premises including the lovely rooms available for B&B rental (great poolside bedroom).